LO.4 Oscar created Lavender Corporation four years ago. The C corporation has paid I S SUE ID Oscar as president a salary of $200,000 each year. Annual earnings after taxes approximate $700,000 each year. Lavender has not paid any dividends nor does it intend to do so in the future. Instead, Oscar wants his heirs to receive the stock with a step-up in stock basis when he dies. Identify the relevant tax issues.