Abel, the sole shareholder of Ace Corporation, has an opporunity to purchase the assets of a sole

Question:

Abel, the sole shareholder of Ace Corporation, has an opporunity to purchase the assets of a sole proprietorship for $50,000 in cash. Ace has a substantial E&P balance. Abel does not have sufficient cash to personally make the purchase. If Abel obtains the needed $50,000 from Ace via a nonliquidating Abel will have to recognize income. Alternatively, would Ace’s purchase of the assets of the sole proprietorship followed by their to Abel in redemption of part of his stock holdings constitute a partial liquidation? Explain.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...