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assignment 3. thank you! In each of the following independent situations, determine if the redemption of shares will be treated as an exchange or as
assignment 3. thank you!
In each of the following independent situations, determine if the redemption of shares will be treated as an exchange or as a distribution. For situations 1-2, the ownership of a corporation is: Andy Barb Cindy 10 shares 20 shares 70 shares Situation 1: The corporation redeems 4 shares of stock held by Barb. Situation 2: The corporation redeems 40 shares of stock held by Cindy. Situation 3: The corporation redeems all 10 shares of stock held by Andy. Situation 4: Same facts as Situation 3 except Cindy is Andy's mother. Andy will still redeem all 10 shares of stock. Assume that Andy wants this to be an exchange. Will it be? if not, is there a way to make it an exchange? To answer this be sure to first review the "Attribution Rules" discussion in Chapter 18 of the textbook Step by Step Solution
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