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Tori owns all 100 shares of Bonsai Corporation stock having a $0.65 million FMV. Her basis in the stock is $350,000. Bonsai's E&P balance is

Tori owns all 100 shares of Bonsai Corporation stock having a $0.65 million FMV. Her basis in the stock is $350,000. Bonsai's E&P balance is $300,000. Evan would like to purchase the stock but wants only the corporation's non-cash assets valued at $500,000. Evan is willing to pay $500,000 for these assets. Read the requirements. Requirement a. What are the tax consequences to Tori, Evan, and Bonsai if Evan purchases 75 shares of Bonsai stock for $500,000 and Bonsai redeems Tori's remaining 25 shares for $150,000 cash? Tori will recognize $237,500 of capital gain She will recognize an additional $ 62,500 of on her sale of 75 shares of Bonsai Corporation stock to Evan. capital gain on the redemption of her remaining shares by Bonsai. Evan will recognize a gain of recognize a loss of take a basis in his stock of

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