Indigo Corporation wants to transfer cash of $150,000 or property worth $150,000 to one of its shareholders,

Question:

Indigo wants to transfer cash of $150,000 or property worth $150,000 to one of its shareholders, Linda, in a redemption transaction that will be treated as a qualifying stock redemption. If Indigo distributes property, the will choose between two assets that are each worth $150,000 and are no longer needed in its business: property A (basis of $75,000) and property B (basis of $195,000). Indigo is indifferent as to the form of the but Linda prefers a cash Considering the tax consequences to Indigo on the to redeem Linda's shares, what should Indigo distribute?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...