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This statement is True or Flase ? A single shareholder of a C-corporation creates a plan of redemption whereby the C-corporation will redeem his stock

image text in transcribedThis statement is True or Flase ?

A single shareholder of a C-corporation creates a plan of redemption whereby the C-corporation will redeem his stock for cash. The C-corporation has no accumulated earnings and profits. The redemption will be treated as a sale or exchange triggering capital gain to the shareholder to the extent that the money received exceeds the basis of the shares redeemed

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