Question: Question 1: Chapter 6 AB Corporation has two shareholders, A and B.A owns 50 shares worth $5,000 (basis = $1,000) and B owns 50 shares

Question 1: Chapter 6 AB Corporation has two shareholders, A and B.A owns 50 shares worth $5,000 (basis = $1,000) and B owns 50 shares worth $5,000 (basis = $1,000). The corporation distributes $3,000 to B in exchange for 30 shares. What are the tax consequences to B? (a) What is B's capitai gain (if any) from the transaction? (b) With regard to 3'5 remaining shares in AB Corporation, what is his basis per share

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