Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $3,000, and Clyde owns the remaining 40 shares with a basis of $14,000. 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.

Note: Leave no answer blank. Enter zero if applicable.

Required:

1. Getaway redeems 10 of Bonnie's shares for $3,500. Getaway has $30,000 of E&P at year-end and Bonnie is unrelated to Clyde.
2. Getaway redeems 30 of Bonnie's shares for $7,000. Getaway has $30,000 of E&P at year-end and Bonnie is unrelated to Clyde.
3. Getaway redeems 9 of Clyde's shares for $4,000. Getaway has $30,000 of E&P at year-end and Clyde is unrelated to Bonnie..

Note: Round your answers to the nearest whole number.

Required A: Getaway redeems 10 of Bonnies shares for $3,500. Getaway has $30,000 of E&P at year-end and Bonnie is unrelated to Clyde.

Bonnie owns 60% before the redemption and _______% after the redemption

Does this qualify as a sale or exchange: YES or NO? If so, how much is the gain?_____

Required B: Getaway redeems 30 of Bonnies shares for $7,000. Getaway has $30,000 of E&P at year-end and Bonnie is unrelated to Clyde.

Bonnie owns 60% before the redemption and _______% after the redemption

Does this qualify as a sale or exchange: YES or NO? If so, how much is the gain?_____

Required C: Getaway redeems 9 of Clydes shares for $4,000. Getaway has $30,000 of E&P at year-end and Clyde is unrelated to Bonnie.

Clyde owns 40% before the redemption and _______% after the redemption

Does this qualify as a sale or exchange: YES or NO? If so, how much is the gain?_____

Thankyou!