17) Tmmy and Willy own 40% of the stock of roadrunner, an S corporation. The other 60% is owned by 99 other shareholders. Tamm and Willy have agreed to a divorce and are in a process of negoating a process settlment.

a) Identify the tax issues for tammy and willy

b) The divorce resulted in the roadrunner stock being distributed equally to both parties. Do the devlopment chance the S Status of the company Roadrunner?