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Inslige Corporation wants to transfer cash of $150,000 or property worth $150,000 to one of its shatehalders, Brianna, in a redemption transaction that will be
Inslige Corporation wants to transfer cash of $150,000 or property worth $150,000 to one of its shatehalders, Brianna, in a redemption transaction that will be treated as a qualifying stock redemption. If indioo distributes property, the corporatien will choose between two assets that are each worth $150,000 and are no longer needed in ite business: Property A (basis of $75,000) and property B (busis of $195,000). a. Compute Indigo's recognized gain or loss if it distributes Property A in redemption of Brianna's shares. The distribution of Property A would result in a realized of to indigo, of which fecognizod. b. Compute Indigo's recocnized gain of loss if it distributis Property B ifi fedemption of Brianna's shares. The distribution of Property 8 would result in a reaficed of to Indigo, of which recoonized, c. Compute Indigo's recogrized gain or loss if it sells Property Bs to an unrelated party, then distributen the sale proceeds in redemption of Brianna's tharesis A sale of Property i) to an unrelated party would result in a realized of of to Indige, of which b. Compute Indigo's recognized gain or loss if it distributes Property B in redemption of Brianna's shares. The distribution of Property 8 would result in a realized of 1 to Indigo, of which 4 is irecognized. c. Compute Indigos recognized gain or losis if it sells Probeity is to an unreiatud party, then distributes the sale oroceeds in redernption of Briannas shares. A sale of Property B to ari unrelated party would result in a realized at to Indigo; of which C Compute Indigo's recognized oain or loss if it sells Property B to an unrelated party, then distritutes the sale proceeds in redemption of Brianna's shares. A sale of Property B to an unrelated party would result in a fealize of 3 to indige, of which
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