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Elton Inc. has 220,000 common shares outstanding. All these shares were issued at a price of $12.00 per share, for total proceeds of $2,640,000. This is the PUC of the shares. Gorgio, who acquired his 15,000 shares at a price of $10 per share, has been a major problem for the Company. To rid itself of the problems associated with this individual, the Company has offered to redeem his shares at $12.50 per share on August 31, 2020. This offer has been accepted. Any dividends resulting from the redemption will be non-eligible. Required: Determine the effects of this redemption to Gorgio's net income for tax and federal tax payable. Note, you do not have to calculate his tax payable. Calculate any income inclusions, deductions or tax credits which will result from this share redemption 19 marks] A- B I E E % &