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A&W corporation is owned as follows (800 shares issues and outstanding): Mr. B Sr. 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares)

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A&W corporation is owned as follows (800 shares issues and outstanding): Mr. B Sr. 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares) Mrs. B (B Sr.'s wife) 10% (80 shares) Mr. B Jr. 10% (80 shares) Mr. C. Jr. 15% (120 shares) Mrs. C C Sr.'s wife) 5% (40 shares) Darrel (Mr. C Sr.'s grandson) 10% (80 shares) TOTAL 100% Determine the (1) amount and (2) character of a redemption on the shareholder if One- half of Mrs. B's shares are redeemed for $60,000 in cash. Mrs. B's basis in the redeemed shares is $20,000. E&P in the corporation is $1,000,000. 1. Dahlia Corp. was organized and commenced Operations in 1930. At December 1, 2020, Dahlia had accumulated earnings and profits of $9,000 before a dividend declaration and distribution, On December 31, 2020, Dahlia distributed cash of $9,000 and a parcel of land to Mr. Green, Dahlia's only stockholder. At the date of distribution, the land had a basis of $5,000 and a market value of $40,000. What was Mr. Green's taxable dividend income in 2020 from these distributions assuming a 35% corporate tax rate. 1. On January 1, 2002, Ashley Corporation distributed $1231 land with a market value of $300,000 and an adjusted basis of $205,000 pursuant to a plan qualifying for a complete redemption under the $302(b)(3). The distribution was made to individual shareholder C who had owned 40% of Ashley since it was founded. C's sister owns the remaining 60 percent. C's stock Interest redeemed had a basis of $140,000, What is the amount and the character of any gain or loss that Ashley should recognize on the distribution? A & W corporation is owned as follows (800 shares issues and outstanding): Mr. B ST 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares) Mrs. B (B Sr.'s wife) 10% (80 shares) Mr. B Jr. 10% | 80 shares) Mr. C. Jr. 15% (120 shares) Mrs. C C Sr.'s wife) 5% (40 shares) Darrel (Mr. C Sr.'s grandson) 10% (80 shares) TOTAL 100% Determine the (1) amount and (2) character of a redemption on the shareholder if One- half of Darrel's stock is redeemed for $60,000 in cash. Darrel's basis is $80,000 in the redeemed stock. E&P in the corporation is $1,000,000. A&W corporation is owned as follows (800 shares issues and outstanding): Mr. B Sr. 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares) Mrs. B ( B Sr.'s wife) 10% (80 shares) Mr. B Jr. 10% (80 shares) Mr. C. Jr. 15% (120 shares) Mrs. C C Sr.'s wife) 5% (40 shares) Darrel (Mr. C Sr.'s grandson) 10% (80 shares) TOTAL 100% Determine the (1) amount and (2) character of a redemption on the shareholder if following C Sr's death, one-half of his stock was redeemed to pay death taxes. The redemption price for half the stock was $180,000. C Sr's basis in half his stock was $50,000 and the value of the shares redeemed on the date of death was $180,000. C Sr's adjusted gross estate was $300,000. E&P in the corporation is $1,000,000. A&W corporation is owned as follows (800 shares issues and outstanding): Mr. B Sr. 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares) Mrs. B (B Sr.'s wife) 10% (80 shares) Mr. B Jr. 10% (80 shares) Mr. C. Jr. 15% (120 shares) Mrs. C C Sr.'s wife) 5% (40 shares) Darrel (Mr. C Sr.'s grandson) 10% (80 shares) TOTAL 100% Determine the (1) amount and (2) character of a redemption on the shareholder if One- half of Mrs. B's shares are redeemed for $60,000 in cash. Mrs. B's basis in the redeemed shares is $20,000. E&P in the corporation is $1,000,000. 1. Dahlia Corp. was organized and commenced Operations in 1930. At December 1, 2020, Dahlia had accumulated earnings and profits of $9,000 before a dividend declaration and distribution, On December 31, 2020, Dahlia distributed cash of $9,000 and a parcel of land to Mr. Green, Dahlia's only stockholder. At the date of distribution, the land had a basis of $5,000 and a market value of $40,000. What was Mr. Green's taxable dividend income in 2020 from these distributions assuming a 35% corporate tax rate. 1. On January 1, 2002, Ashley Corporation distributed $1231 land with a market value of $300,000 and an adjusted basis of $205,000 pursuant to a plan qualifying for a complete redemption under the $302(b)(3). The distribution was made to individual shareholder C who had owned 40% of Ashley since it was founded. C's sister owns the remaining 60 percent. C's stock Interest redeemed had a basis of $140,000, What is the amount and the character of any gain or loss that Ashley should recognize on the distribution? A & W corporation is owned as follows (800 shares issues and outstanding): Mr. B ST 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares) Mrs. B (B Sr.'s wife) 10% (80 shares) Mr. B Jr. 10% | 80 shares) Mr. C. Jr. 15% (120 shares) Mrs. C C Sr.'s wife) 5% (40 shares) Darrel (Mr. C Sr.'s grandson) 10% (80 shares) TOTAL 100% Determine the (1) amount and (2) character of a redemption on the shareholder if One- half of Darrel's stock is redeemed for $60,000 in cash. Darrel's basis is $80,000 in the redeemed stock. E&P in the corporation is $1,000,000. A&W corporation is owned as follows (800 shares issues and outstanding): Mr. B Sr. 25% (200 shares) Mr. C Sr. (B's brother) 25% (200 shares) Mrs. B ( B Sr.'s wife) 10% (80 shares) Mr. B Jr. 10% (80 shares) Mr. C. Jr. 15% (120 shares) Mrs. C C Sr.'s wife) 5% (40 shares) Darrel (Mr. C Sr.'s grandson) 10% (80 shares) TOTAL 100% Determine the (1) amount and (2) character of a redemption on the shareholder if following C Sr's death, one-half of his stock was redeemed to pay death taxes. The redemption price for half the stock was $180,000. C Sr's basis in half his stock was $50,000 and the value of the shares redeemed on the date of death was $180,000. C Sr's adjusted gross estate was $300,000. E&P in the corporation is $1,000,000

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