Question
Question 8 Clark, Bruce, and Diana, unrelated individuals, own all of the stock in Trinity Corporation (E & P of $1.2 million) as follows: Clark,
Question 8
Clark, Bruce, and Diana, unrelated individuals, own all of the stock in Trinity Corporation (E & P of $1.2 million) as follows: Clark, 1,500 shares; Bruce, 300 shares; and Diana, 200 shares. Trinity redeems 900 of Clarks shares (basis of $210,000) for $625,000. With respect to the distribution in redemption of the stock:
| a. | Clark has a capital gain of $415,000. | |
| b. | Clark has a capital gain of $625,000. | |
| c. | Clark has dividend income of $415,000. | |
| d. | Clark has dividend income of $625,000. | |
| e. | None of the above. |
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The Operational Auditing Handbook Auditing Business And IT Processes
Authors: Andrew Chambers, Graham Rand
2nd Edition
0470744766, 978-0470744765
