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Ted owns 20% of a closely-held family corporation. The remaining shares are held by his parents. Ted decides he no longer wants an interest in
Ted owns 20% of a closely-held family corporation. The remaining shares are held by his parents. Ted decides he no longer wants an interest in the corporation and his entire interest is bought out by the corporation. Pick the true statement from the list below.
Question options:
| a. The payment for his shares will be treated as all dividend income |
| |
| b. This will be treated as a qualified redemption if he agrees to not acquire a prohibited interest (shareholder, officer, director, employee) for 10 years after the redemption |
| c. None of the above |
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