Question
Family Corporation, a corporation controlled by Buddy's family, redeems all of Buddy's stock. For the redemption to be treated as a sale, which one of
Family Corporation, a corporation controlled by Buddy's family, redeems all of Buddy's stock. For the redemption to be treated as a sale, which one of the following conditions must be met?
A.Buddy must have purchased the redeemed stock from a person whose stock ownership would be attributed to Buddy.
B.Buddy cannot be a creditor of the corporation after the redemption.
C.Buddy cannot be an officer of the corporation after the redemption.
D.Buddy cannot acquire an interest, even by inheritance, for 10 years unless the bequest was made prior to the redemption.
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