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Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,500, and Clyde owns the remaining
Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,500, and Clyde owns the remaining 40 shares with a basis of $13,500. 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 (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,500. Getaway has $23,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 38 of Bonnie's shares for $7,000. Getaway has $23,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 5 of Clyde's shares for $4,000. Getaway has $23,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below Req A Req B Req C Getaway redeems 10 of Bonnie's shares for $3,500. Getaway has $23,000 of E&P at year-end and Bonnie is unrelated to Clyde. (Round your answers to the nearest whole number.) nnie owns 60% before the redemption and Does this qualify as a sale or exchange? r the redemption If so, how much is the gain? ReqA Req B > Req C Req B Req A Getaway redeems 38 of Bonnie's shares for $7,000. Getaway has $23,000 of E&P at year-end and Bonnie is unrelated to Clyde. Do not round intermediate calculations Round your answers to the nearest whole number.). Bonnie owns 60% before the redemption, oes this qualify as a sale or exchange? after the redemption If so, how much is the gain? Req C Req A
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