Rick owns 50% of the 123 Company and his daughter, Donna, owns the other 50%. Rick decides to have 123 redeem all of his stock. Although Rick will not directly own any stock in 123 after the redemption, he will continue to be employed by the company. Will Ricks redemption, as structured, be eligible for sale treatment under Section 302(b)(3) as a complete termination? a. yes. b. no.

Mike owned 100 shares of the HHH Corporation. Mikes total basis in his 100 shares was $100 ($1 per share basis). Then HHH redeemed 60 of Mikes shares. Mike received sale treatment on the redemption. After the redemption, Mikes total basis in his remaining 40 shares is:

		a. $100.
		b. $40.
		c. $60.
		d. None of the above.