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s of January 1, 2019, the stock of Pace Corp. was owned as follows: Ellis 10 Shares Vivacious (Ellis's spouse) 30 Shares Frank (Ellis' father)

s of January 1, 2019, the stock of Pace Corp. was owned as follows:

Ellis 10 Shares

Vivacious (Ellis's spouse) 30 Shares

Frank (Ellis' father) 40 Shares

Herb (Franks brother) 20 Shares

On December 31, 2019, Pace Corp. paid Vivacious $150,000 and she surrendered ten (10) shares of stock.

Does the redemption of the ten (10) shares qualify for sale or exchange treatment? If so, why?

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