Amanda Corp is owned by Amanda 500 shares, Sammy 100 shares, and Bailey 400 shares.<\/p>
Sammy is Amanda's grandson. Amanda Corp redeems 225 of Amanda's shares. Amanda's basis<\/p>
in her shares is $5,000 ($10 per share). What is the tax treatment to Amanda?<\/p>
A. Dividend<\/p>
B. Return of Capital to extent of basis then capital gain<\/p>
C. Return of Capital<\/p>
D. Dividend to extent of basis then return of capital<\/p>
E. None of the above<\/p>", "transcribed_text": "", "related_book": { "title": "Income Tax Fundamentals 2013", "isbn": "1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516", "edition": "31st Edition", "authors": "Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1124.jpg", "uri": "\/textbooks\/income-tax-fundamentals-2013-31st-edition-9781285586618", "see_more_uri": "" }, "free_related_book": { "isbn": "0495504297", "uri": "\/textbooks\/constructions-of-deviance-social-power-context-and-interaction-6th-edition-978-0495504290-264010", "name": "Constructions Of Deviance Social Power Context And Interaction", "edition": "6th Edition" }, "question_posted": "2024-06-28 04:39:57", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/garys-steel-parts-produces-parts-for-the-automobile-industry-the-242514", "description": "Garys Steel Parts produces parts for the automobile industry. 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