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Mary owns 500 shares of the Marina Corporation and her total basis in her shares is $50,000. Marina Corporation redeems 200 of Marys shares. Assume
Mary owns 500 shares of the Marina Corporation and her total basis in her shares is $50,000. Marina Corporation redeems 200 of Marys shares. Assume the redemption is treated as a dividend for tax purposes. In this case Marys basis in her remaining 300 shares after the redemption will be: a. $30,000. b. $20,000. c. zero. d. $50,000. e. none of the above
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