9. CNY Corporation has 2500 shares of stock outstanding. Logan owns 700 of the shares, Logan's grandfather owns 100 shares, Logan's father owns 100 shares and Logan's wife owns 700 shares. Blue Corporation owns 400 shares of CNY and Logan own's 30% of Blue, Orange Partnership owns 500 shares of CNY and Logan owns 30% of Orange. many shares is Logan deemed to own in CNY Corporation under the Sec. 318 attribution rules? How a. 700 shares b. 1770 shares c. 1750 shares d. 1650 shares 10. Costs associated with a redemption transaction such as legal and accounting are not deductible expenses for income tax purposes a. True False 11. Wisconsin Corporation is in the process of a plan of complete liquidation. Wisconsin distributes to its sole shareholder, Betty, land with a basis of $375,000 and a fair market value of $775,000. The land is subject to a liability of $765,000 which Betty will assume. Betty's shares have a tax basis of $50,000 prior to the transaction. Which statement below is correct? Wisconsin will recognize a gain of $400,000 and Betty will recognize a loss of $40,000. Wisconsin will recognize a gain of $390,000 and Betty will recognize a loss of $40,000. Wisconsin will recognize a gain of $400,000 and Betty will have a loss she cannot recognize Wisconsin will recognize a gain of $390,000 and Betty will recognize a gain of $725,000. a. b. c. d. 12. As a result of a redemption a shareholder's stock interest (direct and indirect) goes from 52% down to 45%. The redemption qualifies for sale or exchange treatment as a qualified redemption. a. True b. False