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Suppose an individual shareholder owns ten shares of common stock of X Corporation with a basis of $15,000. What happens to the shareholders basis if

Suppose an individual shareholder owns ten shares of common stock of X Corporation with a basis of $15,000. What happens to the shareholders basis if five shares are redeemed in a transaction which is properly classified as a dividend? What if all ten shares are redeemed in a transaction which is properly classified as a dividend because a 302(c)(2) waiver of family attribution is unavailable?

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