Question: Enabled: 8 - 4 Exam Saved 2 6 Comet Company is owned equally by Pat and his sister Pam, each of whom holds 1 0

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Comet Company is owned equally by Pat and his sister Pam, each of whom holds 100 shares in the company. Pam wants to reduce her on and it was decided that the company will redeem 50 of her shares for $1,000 per share on December 31,20X3. Pam's adjusted tax basis ir Comet has total E&P of $250,000. What are the tax consequences to Pam because of the stock redemption?

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