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Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 65 shares with a basis of $3,900, and Clyde owns the
Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 65 shares with a basis of $3,900, and Clyde owns the remaining 35 shares with a basis of $14,500. 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 15 of Bonnie's shares for $4,000. Getaway has $31,000 of E&P at year-end and Bonnie is unrelated to Clyde b. Getaway redeems 32 of Bonnie's shares for $8,000. Getaway has $31,000 of E&P at year-end and Bonnie is unrelated to Clyde c. Getaway redeems 4 of Clyde's shares for $4,500. Getaway has $31,000 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 15 of Bonnie's shares for $4,000. Getaway has $31,000 of E&P at year-end and Bonnie is unrelated to Clyde. (Round your answers to the nearest whole number.) Bonnie owns 65% before the redemption and % after the redemption Does this qualify as a sale or exchange? No If so, how much is the gain? Reg Req B>
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