1. Jack, Jill, and Jim (all unrelated) have been shareholders of Newco, Inc. since 2013 (E&P of $700,000). Jack and Jill each own 300 shares of stock and Jim owns 400 shares. In 2022 Newco redeemed 200 of Jim's shares for ( $ 250,000 ). Jim's basis in the 200 shares redeemed is ( $ 175,000 ). The tax result of this redemption to Jim is: a. Long term capital gain of ( $ 75,000 ) b. Short term capital gain of ( $ 75,000 ) c. Ordinary income of ( $ 250,000 ) d. Ordinary income of ( $ 75,000 ) e. None of the above

1. Jack, Jill, and Jim (all unrelated) have been shareholders of Newco, Inc. since 2013 (E\&P of \$700,000). Jack and Jill each own 300 shares of stock and Jim owns 400 shares. In 2022 Newco redeemed 200 of Jim's shares for $250,000. Jim's basis in the 200 shares redeemed is $175,000. The tax result of this redemption to Jim is: a. Long term capital gain of $75,000 b. Short term capital gain of $75,000 c. Ordinary income of $250,000 d. Ordinary income of $75,000 e. None of the above