LO.1 Pedro owns 700 of the 1,000 shares outstanding of Indigo Corporation (E & P of $950,000).
Question:
LO.1 Pedro owns 700 of the 1,000 shares outstanding of Indigo Corporation (E & P of
$950,000). Pedro paid $170 per share for the stock 12 years ago. The remaining stock in Indigo is owned by unrelated individuals. What are the tax consequences to Pedro in the following independent situations?
a. Indigo redeems 350 shares of Pedro’s stock for $175,000.
b. Indigo redeems 450 shares of Pedro’s stock for $225,000.
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Related Book For 
South Western Federal Taxation 2013 Corporations Partnerships Estates And Trusts
ISBN: 9781133495574
36th Edition
Authors: William H. Hoffman, William A. Raabe, James E. Smith, David M. Maloney
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