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SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 57P
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Question
Moore Corporation has 400 shares of stock
outstanding that are owned equally by four
unrelated shareholders. Moore redeems 100
shares from the shareholders as shown below
for $600 per share. Each shareholder has a $180
per share basis for his stock. Moore
Corporation's current and accumulated E&P at
the end of the tax year is $150,000.
what are the tax consequences of these
redemptions?
Transcribed Image Text:Moore Corporation has 400 shares of stock outstanding that are owned equally by four unrelated shareholders. Moore redeems 100 shares from the shareholders as shown below for $600 per share. Each shareholder has a $180 per share basis for his stock. Moore Corporation's current and accumulated E&P at the end of the tax year is $150,000. what are the tax consequences of these redemptions?
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