Mr. Aslak owns all the stock in Shoes Inc., which owns 85 percent of Skiing Inc. Ms. Quinn, the manager of Skiing, wishes to share in the profits of the prosperous firm by buying 5 percent of its stock. Shoes Inc. then distributes its stock interest in Skiing to Mr. Aslak, who then sells a 5 percent interest in Skiing to Ms.

Quinn for $15,000. Assume the sale ofs tock to a key employee has a valid business and corporate purpose.

How would the IRS view the above transaction?