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Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $3,900, and Clyde owns the
Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $3,900, and Clyde owns the remaining 40 shares with a basis of $18,000. 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: a. Getaway redeems 10 of Bonnie's shares for $3,500. Getaway has $21,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 30 of Bonnie's shares for $7,000. Getaway has $21,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $4,000. Getaway has $21,000 of E&P at year-end and Clyde is unrelated to Bonnie Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C D
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