Question
Ben has owned all 100 outstanding shares of N and M Corporations stock for the past 10 years. Bens basis for the stock is $50,000.
Ben has owned all 100 outstanding shares of N and M Corporations stock for the past 10 years. Bens basis for the stock is $50,000. N and M have earnings and profits of $100,000. The corporation redeemed 25 shares of Bens stock for $75,000 in the current year. How will Ben report this?
$75,000 dividend.
$75,000 gain.
$50,000 gain.
None of the above
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Management Accounting A Business Planning Approach
Authors: Noah P. Barsky, Jr. Anthony H. Catanach
2nd Edition
1516506286, 978-1516506286
