19-4 13. in 2016 Comprehensive VolumefSolutions Manual managing corporate operations? Although Judy is not a shareholder, her relationship to Holly and Terry is enough of a link to raise the unreasonable compensation issue. In addition, Pink Corporation has never distributed a dividend despite having substantial E 81 P. Given Pink's dividend history and the salary disparities, the LES might successfully argue that all of the salary paid to Terry and Holly, as well as a portion of Judy's salary [i.e., the excess over the amount paid to John) is unreasonable. [L 0 B, 9, 10) Whether Louis or Mari have a preference for personally acquiring the Cerise stock or for a stock redemption or for a sale to a third party. Whether Louis or Mari have the nancial resources to acquire the Cerise stock If Louis or Mari do acquire the Cerise stock, their basis in the shares. Whether Cerise Corporation has the financial resources, including the ability to issue its own notes, to fund a stock redemption. If Chao has a preference for a cash transaction, whether Cerise has sufcient cash available for such a distribution or propertythat can be sold to fund a distribution. I If Cerise must sell property to nance a redemption, what property should be sold and the tax consequences resulting from such a sale?I If property can be distributed in the redemption, whether Cerise has property suitable for a distribution and the tax consequences from such a distribution, I If property is distributed pursuant to a redemption, Chao's basis and holding period for such P130118\"?- The effect of any property sale and redemption distribution on Cerise's E 8: P. The tax treatment of any expenditures incurred in a redemption of Chao's shares, including interest expense related to a debt-financed redemption. Whether there is a market for a sale of the stock to a third party