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Since 2007, Ben has owned all 100 outstanding shares of N and M Corporations stock. Bens basis for the stock is $50,000. In 2018, N
Since 2007, Ben has owned all 100 outstanding shares of N and M Corporations stock. Bens basis for the stock is $50,000. In 2018, N and M have earnings and profits of $100,000. The corporation redeemed 25 shares of Bens stock for $75,000 in 2018. How will Ben report this?
$50,000 gain.
None of the answers are correct.
$75,000 dividend
. $75,000 gain.
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