gate a of the that redemption, but, instead, should be measured after Bs that followed soon after A's redemption. and ent. (1) Pas ck ht en a PROBLEMS 1. Y Corporation has 100 shares of common stock and 200 shares of nonvoting preferred stock outstanding. Alice owns 80 shares of Y common stock and 100 shares of its preferred stock. Cathy owns the remaining 20 shares of Y common and 100 shares of Y preferred stock. Alice and Cathy are not related. In each of the following alternative situations, determine whether the redemption satisfies the requirements of 302(b)(2): (a) On January 15, Y Corporation redeems 75 of Alice's preferred shares. (b) Same as (a), above, except that Y also redeems 60 shares of Alice's common stock. (c) Same as (a), above, except that Y also redeems 70 shares of Alice's common stock. (d) What difference would it make in (c), above, if, on December 1 of the same year, Y redeems 10 shares of Cathy's common stock? 2. Z Corporation has 100 shares of voting common stock and 200 shares of nonvoting common stock outstanding. Every share of Z common stock has a fair market value of $100. Don owns 60 shares of Z voting common stock and 100 shares of Z nonvoting common stock. Jerry owns all of the remaining Z stock. Don and Jerry are not related to one another. If Z redeems 30 of Don's voting common shares, will the redemption qualify for exchange treatment under $ 302(b)(2)? 2. COMPLETE TERMINATION OF A SHARTUOLDER'S