Question
Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 65 shares with a basis of $6,500, and Clyde owns the remaining
Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 65 shares with a basis of $6,500, and Clyde owns the remaining 35 shares with a basis of $11,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Round your answers to the nearest whole number.)
1) Getaway redeems 33 of Bonnies shares for $11,000. Getaway has $25,000 of E&P at year-end and Bonnie is unrelated to Clyde. Bonnie owns 65% before the redemption and ___ % ater with a capital gain of _____ PLEASE INCLUDE HOW YOU CAME UP WITH THE PERCENT AND GAIN NUMBERS
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