Staton Inc. has four unrelated shareholders, Wayne, Judy, Erica, and Josh. Their respective bases in the shares
Question:
Staton Inc. has four unrelated shareholders, Wayne, Judy, Erica, and Josh. Their respective bases in the shares are $15,000,
$17,000, $19,000, and $21,000. Each shareholder owns 100 shares of Staton.
On November 8 Staton Inc. redeemed 50 shares of Wayne's stock for $10,000 and 20 shares of Judy’s stock for $4,000. Staton’s current E&P was $30,000. What are the tax consequences to Wayne and Judy?
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The tax consequences of stock redemptions depend on several factors including the specific details o...View the full answer
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Related Book For 
CCH Federal Taxation Basic Principles 2020
ISBN: 9780808051787
2020 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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