Question: A corporation owned solely by shareholder A has a value of $100,000. Individual B intends to acquire a 50% equity interest in the corporation. The

A corporation owned solely by shareholder A has a value of $100,000. Individual B intends to acquire a 50% equity interest in the corporation. The cost to that individual of acquiring 50% of the corporation’s shares may be either $100,000 or $50,000. Explain.

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