Disproportionate Redemption On January 1, 20x7, Witch Corporation had 100 shares issued and outstanding. On June 1, Witch Corporation redeemed stock from its shareholders as follows: Shareholder Holding Before Redemption Shares Redeemed Agnes 30 24 Samantha 10 2 Glinda 60 30 a) What are the tax consequences to Agnes as a result of the redemption? b) What are the tax consequences to Samantha as a result of the redemption? c) What are the tax consequences to Glinda as a result of the redemption? d) Would your answers a) and b) change if Agnes is Samantha's mother

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a Tax consequences to Agnes as a result of the redemption Agnes held 30 shares before the redemption and had 24 shares redeemed This means she still h... View the full answer