QUESTION 1 Marvel Corporation's 2,000 shares outstanding are owned as follows: Peter, 800 shares; Mary (Peter's sister), 800 sharesi and Kelly (Peter's daughter), 400 shares. During the current year, Marvel (E & P of $1 million) redeemed 600 shares of Peter's stock for $100,000. If Peter had acquired the 600 shares five years ago for $30,000, he will have a long-term capital gain of QUESTION 2 Briana's adjusted gross estate is $9 million. The death taxes and funeral and administration expenses of her estate total $1.2 million. Included in Briana's gross estate is stock in Unicorn Corporation, valued at $5 million as of the date of her death. Briana had acquired the stock six years ago at a cost of $300,000. If Unicorn Corporation redeems $1.2 million of Unicorn stock from the estate shortly after Briana's death, the estate will recognize capital gain of: QUESTION 3 Kombucha Corporation has 2,200 shares of common stock outstanding. Joshua owns 900 of the shares, Joshua's grandfather owns 100 shares, Joshua's father owns 100 shares, Joshua's ex-wife owns 700 shares, and Purplebird Partnership owns 400 shares. Joshua is a 50% partner in Purplebird Partnership. How many shares is Joshua deemed to own in Kombucha Corporation under the 318 attribution rules? QUESTION 4 Plane Corporation has 1,200 shares of stock outstanding. Clark owns 300 shares, Clark's father owns 200 shares, Clark's daughter owns 100 shares, and Clark's aunt owns 200 shares. Balloon Corporation owns the other 400 shares in Plane Corporation. Clark owns 25% of the stock in Balloon Corporation. Applying the 318 stock attribution rules, how many shares does Clark own in Plane Corporation? QUESTION 5 Hawk Corporation (E & P of $700,000) has 3,000 shares of common stock outstanding. Federico owns 1,500 shares and his wife, Catherine, owns 1,500 shares. Federico and Catherine each have a basis of $90,000 in their Hawk stock. In the current year, Hawk Corporation redeems 1,000 shares from Federico for $300,000. Assuming sufficient E&P, with respect to the distribution in redemption of the Hawk stock Federico has dividend income of