33 . CPA Exam Question . Zeb , an individual shareholder , owned 25% of Towne Corporation stock .Pursuant to a series of stock redemptions , Towne redeemed 10% of the shares of stock Zeb ownedin exchange for land having a fair market value of $30 , 000 and an adjusted basis of $ 10 , 000 . Zeb'sbasis for all of his Towne stock was $ 200 , 000 . Zeb reported the redemption transaction as if it werea dividend . Zeb's basis in the land and his Towne stock ( immediately after the redemption ) is :2 . Land , $30, 000 ; stock , $ 200, 000b. Land , $30 , 000 ; stock , $ 180 , 000C. Land , $ 10, 000 ; stock $ 200, 000d. Land. $20. 000: stock. $200. 000