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 40 shares Barb 20 shares Cindy 40 shares Situation 1: The corporation redeems 10 shares of stock held by Barb. Situation 2: The corporation redeems 30 shares of stock held by Cindy.

Situation 3: The corporation redeems 15 shares of stock held by Andy. Situation 4: Same facts as Situation 1 except Andy is Barbs father. To answer this be sure to first review the Attribution Rules discussion in Chapter 18 of the textbook.