I am looking for an in-depth discussion, including the use of code sections, cases and other relevant primary authority.

Bill, Bob, Sue and Jane decided for form a corporation, Big Bubbas Brewing Company, each will end up with 2,500 shares.Each individual gave the following:

Bill gave $150,000 in cash and brewing equipment with a FMV of $50,000 and his basis was $10,000.

Bob gave a building and land with a FMV of $350,000, his basis in the property was $60,000 and the property had a loan of $150,000.

Sue gave a food truck with a FMV of $60,000, her basis in the truck was $100,000.In addition, she gave $10,000 of legal services.Last, she contributed accounts receivable with a FMV of $130,000, she was a cash basis taxpayer.

Last, Jane gave additional brewing equipment with a FMV of $300,000, her basis was $25,000 and the equipment had a loan of $100,000.

The same shareholders as above, with the same basis in their shares as above for the use in this problem.In Year 3, the company had accumulated E&P of $260,000 and current E&P of $100,000.On December 31, Bill redeemed 1,000 of his shares for $150.00 per share.On March 31, the company made a distribution to each shareholder of $50,000 and then on September 30, the company made another $20,000 distribution to each shareholder.On June 30, Sue sold of her shares to Mary Anne for $100,000.

Please discuss the tax ramifications for Year 3 to the shareholders and corporation.

In Year 4, the company was sold all its assets $1,000,000, the company's balance sheet looked as follows:

FMVBasis

Inventory100,00025,000

Equipment200,00050,000

Building350,000175,000

Land300,000100,000

Liabilities on Building and Land$200,000

All assets and liabilities were transferred as part of the asset sale.Please explain the tax ramifications to Big Bubba's Brewing Company, its shareholders and the acquiring corporation.The proceeds of the sale were distributed pro-rata based upon stock ownership.The company's corporate tax rate is 30% and there are no NOLs or capital loss carry forwards.Please include numbers.

Would the shareholders of Big Bubba rather sell the stock for $800,000?