In each of the following independent situations, determine if the redemption of shares will be treated as an exchange or as a distribution. For situations 1 2, the ownership of a corporation is:

Andy 100 shares Barb 200 shares Cindy 200 shares

Situation 1: The corporation redeems 50 shares of stock held by Andy.

Situation 2: The corporation redeems 50 shares of stock held by Cindy.

Situation 3: Same basic facts except Barb and Cindy are mother and daughter. Cindy will redeem 150 shares of stock. To answer this be sure to first review the Attribution Rules discussion that begins on page 4-18 of the textbook.