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Use of a cross-purchase agreement (instead of a stock redemption agreement) avoids which of the following problems? a. The need for multiple life insurance policies.

Use of a cross-purchase agreement (instead of a stock redemption agreement) avoids which of the following problems?

a. The need for multiple life insurance policies.

b. Imposition of the corporate AMT on insurance proceeds.

c. The danger that the IRS will value the decedent's shares at an unreasonably high amount.

d. The step-up in basis in the surviving spouse's shares in community property states.

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