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Bonnle and Clyde are the only two shareholders In Getaway Corporation. Bonnle owns 60 shares with a basis of $3,900, and Clyde owns the remalning
Bonnle and Clyde are the only two shareholders In Getaway Corporation. Bonnle owns 60 shares with a basis of $3,900, and Clyde owns the remalning 40 shares with a basis of $18,000. At year-end, Getaway is consldering 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.) Requlred a. Getaway redeems 10 of Bonnie's shares for $3,500. Getaway has $21,000 of E&P at year-end and Bonnle is unrelated to Clyde. b. Getaway redeems 30 of Bonnle's shares for $7,000. Getaway has $21,000 of E&P at year-end and Bonnle 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 Req A Req B Req C 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. (Do not round intermediate calculations. Round your answers to the nearest whole number.) Bonnie owns 60% before the redemption. 43 this qualify as a sale or exchange? f so, how much is the gain? K Req A ReqC > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Req A Req B Req 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 (Round your answers to the nearest whole number.) Clyde owns 40% before the r and IS Does this qualify as a sale or exchange? No K Req B Req C >
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