$*$ Stock redemptions: During the audit period, the construction company redeemed $50\%$ of the outstanding stock owned by the client and $50\%$ of the stock owned by the client's son, leaving each with the same ownership percentage of $50\%.*$ The IRS treated the redemption as a distribution under IRC Section $301\mathrm{.}1.$ Determine reasonable versus unreasonable compensation as outlined in the IRS $162($a$)$ law$\mathrm{.}2.$ Establish when stock redemption is taxable and when it is not. Provide an example of each situation as it relates to the assignment scenario$\mathrm{.}3.$ Create a tax plan. Use Section $301$ of the IRC$\mathrm{.}4.$ Develop a research$-$based and ethical strategy for the client to receive multiple sources of compensation without getting penalized with taxes$\mathrm{.}5.$ Assess the effect of an irrevocable trust on the gift tax and future estate taxes$\mathrm{.}6.$ Propose ethical suggestions to reduce estate tax and gift taxes on property transfers.