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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 $ 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. She will recognize an additional Evan will

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