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Assume the same facts as in Problem C:2-55. Under what circumstances is the tax result in Problem C:2-55 beneficial, and for which shareholders? Can you

Assume the same facts as in Problem C:2-55.

Under what circumstances is the tax result in Problem C:2-55 beneficial, and for which shareholders?

Can you suggest ways to enhance the tax benefit?

See photo for C:2-55 that will have the necessary facts to answer the question above.

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