Question: Packet problems 5 and 6 ; HW 57, 61 Astemplt #5A ABC Corporation is owned by Kerry 500 shares, Lisa 100 shares and Talitha 400

$Packet problems 5 and 6 ; HW 57, 61 Astemplt \#5A$

Packet problems 5 and 6 ; HW 57, 61 Astemplt \#5A ABC Corporation is owned by Kerry 500 shares, Lisa 100 shares and Talitha 400 shares. Lisa is Kerry's mom. Kerry's AB in stock =$5,000 ( $10 per share). ABC redeems 225 of Kerry's shares for $22 per share. What is the tax treatment for Kerry under the bright line tests? Are there any other options to Kerry and if so, what is the tax treatment under those options? \#5B. Assume instead that Kerry redeems 280 shares for the same $22 per share. What is the tax treatment

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