Oriole Corporation, a privately-held company, has one class of voting common stock, of which 1,000 shares are

Question:

Oriole a privately-held company, has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:
Larry Byrd ............................... 400
Paul Byrd (Larry's son) .................... 200
Lady Byrd (Larry's daughter) ............ 200
Cal Rifkin (unrelated) ................... 200
Total ...................................... 1,000
Larry is considering retirement and would like to have the redeem all of his shares for $400,000.
a. What must Larry do or consider if he wants to guarantee that the redemption will be treated as an exchange?
b. Could Larry still act as a consultant to the company and still have the redemption treated as an exchange?
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...