Question 26 The dividends-received deduction is designed to reduce double taxation of corporate dividends payable to individual shareholders. True False Henry transfers property with an adjusted basis of $90,000 and an FMV of $100,000 to a newly-formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of $80,000 and a short-term note with a $20,000 FMV. Henry's recognized gain is $0. $5,000 $20,000 $10,000 Sun and Moon Corporations each have only one class of stock outstanding. Their stock ownership is shown below. Shareholder Sun Corporation Moon Corporation Arthur 50% 60% Brenda 2096 40% Charles 30% 0% David 0% 0% Which of the four stock ownership changes that are illustrated is the minimum change that is needed if Sun and Moon Corporations are to be brother-sister corporations under the 50%-80% requirements? (Assume the two corporations are equally valued.) Charles must acquire an additional 10% of Moon Corporation Charles must acquire an additional 5% of Sun Corporation. No stock ownership change is required. Arthur must acquire an additional 30% of Moon Corporation