Does Sec. 306 apply in each of the following independent situations? If so, what is its effect?
a. Beth sells her Sec. 306 stock to Marvin in a year in which the issuing corporation has no E&P.
b. Zero Corporation redeems Sec. 306 stock from Jim in a year in which it has no E&P.
c. Zero Corporation redeems Sec. 306 stock from Ruth in a year in which it has a large E&P balance.
d. Joan gives 100 shares of her Sec. 306 stock to her nephew, Barry.
e. Ed completely terminates his interest in Zero Corporation by having Zero redeem all his common shares and Sec. 306 preferred stock.
f. Carl inherits 100 shares of Sec. 306 stock from his uncle Ted.