Father owns 40 % of Family Corporation ( FC .) Son owns 30 % of FC and Daughter owns 30 % of FC. ( Father's 2 children are Son and Daughter.) Father wants to retire and have Son and Daughter each own 50 % of FC . Son and Daughter do not have enough money to buy Father's shares. Father insists that the results of the transaction generate a capital gain for him rather than dividend income. ( Father has a high basis in FC shares.) You suggest that the FC redeem all of Father's shares of FC. Which of the following statements is correct?