57. Oriole Corporation, a privately held company, has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:

Larry Byrd 400 Paul Byrd (Larry’s son) 200 Lady Byrd (Larry’s daughter) 200 Cal Rifkin (unrelated) 200 Total 1,000 Larry is considering retirement and would like to have the corporation redeem all of his shares for $400,000.

a. What must Larry do or consider if he wants to guarantee that the redemption will be treated as an exchange?

b. Could Larry act as a consultant to the company and still have the redemption