Question
ABC Corporation (E & P of $800,000) has 1,000 shares of stock outstanding. That stock is held by Josh (550 shares) and Steve (450 shares),
ABC Corporation (E & P of $800,000) has 1,000 shares of stock outstanding. That stock is held by Josh (550 shares) and Steve (450 shares), who are unrelated individuals. ABC redeems 300 of Joshs shares for $1,000 per share. Josh paid $50 per share for his ABC stock nine years ago.
1. Is this a qualified redemption? Why?
2. What is Joshs realized gain/ loss? What is Joshs recognized gain/ loss?
3. What is the character of the recognized gain/ loss?
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Auditing
Authors: Alan Millichamp, John Taylor
12th Edition
1473778999, 9781473778993
