From your analysis of Section 306 in the e-Activity, differentiate between the tax treatment of earnings and profit on the distributing corporation of both a sale of Section 306 stock and redemption of Section 306 stock. Suggest the most important reasons for this differentiation in tax treatment.

Answer rating: 100% (QA)

As per the Us code section 306 of disposition of certain stock which provides if shareholders sells and otherwise disposes of the section 306 stock su... View the full answer