LO.3, 4 Joe, Greg, Lynn, and Shanna each own a 25% interest in Norwich Corporation, which manufactures shoe polish. Joe is irascible and often argues with the other three shareholders. They tend to give in to Joe because he is so persistent. Now Joe has caused Norwich to acquire a wine store by exchanging 30% of the Norwich stock for all of the assets ($300,000) of the wine store. The Norwich stock was distributed to the wine store’s owner, and then the wine store entity liquidated. After Joe has run the wine business for a few months, the other shareholders vote to drop the wine business into a separate corporation, with Joe receiving all of the stock for his 25% interest in Norwich. Joe no longer will be a shareholder of Norwich. Identify the tax issues regarding these transactions.