Oscar created Lavender Corporation four years ago The C corporation
Oscar created Lavender Corporation four years ago. The C corporation has paid 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.
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