QUESTION 6 10 points Save Answer Celeste, Scarlett, and Hank, unrelated individuals, own all of the stock in Wheel Corporation (E & P of $1.2 million) as follows: Celeste, 1,500 shares; Scarlett, 300 sharesi and Hank, 200 shares. Wheel redeems 900 of Celeste's shares (basis of $210,000) for $800,000. With respect to the distribution in redemption of the stock, Celeste has dividend income of QUESTION 7 10 points Save Answer Ashley owns 1,000 shares of Greenbird Corporation stock at a time when Greenbird has 2,000 shares of stock outstanding. The remaining shareholders are unrelated to Ashley. What is the minimum number of shares Greenbird must redeem from Ashley so that the transaction will qualify as a disproportionate redemption? (Round up to the nearest whole number.) QUESTION 8 10 points Save Answer Lynne, Kelly, and Colt own the stock in Blackstone Corporation (E & P of $900,000) as follows: Lynne, 600 shares: Kelly, 400 sharesi and Colt, 1,000 shares. Kelly is Lynne's daughter, and Colt is Lynne's brother. Blackstone Corporation redeems 400 of Lynne's shares (basis of $55,000) for $240,000. Lynne purchased the stock three years ago as an investment. With respect to the stock redemption, Lynne has long-term capital gain of QUESTION 9 10 points Save Answer Melissa and Juan, mother and son, each own 50% of the stock outstanding of Unicorn Corporation (E & P of $400,000) During the current year, Unicorn redeems all of Melissa's shares for $250,000. The transaction cannot qualify as a complete termination redemption if four years after the redemption, Melissa inherited Juan's shares in Unicorn as a result of his son's death. True False QUESTION 10 10 points Save Answer Ashton owns 900 shares of the 2,000 outstanding shares of Vulture Corporation (E & P of $900,000). None of the other shareholders of Vulture are related to Ashton. Ashton acquired his Vulture shares ten years ago for $80,000. Vulture has operated several trades or businesses for more than five years. In the current year, Vulture sells the assets of one of those trades or businesses and distributes the proceeds from the asset sale to the shareholders in a pro rata stock redemption. In this transaction, Ashton receives $250,000 in redemption of 400 shares of Vulture. As a result of this transaction, Ashton will recognize dividend income of QUESTION 6 10 points Save Answer Celeste, Scarlett, and Hank, unrelated individuals, own all of the stock in Wheel Corporation (E & P of $1.2 million) as follows: Celeste, 1,500 shares; Scarlett, 300 sharesi and Hank, 200 shares. Wheel redeems 900 of Celeste's shares (basis of $210,000) for $800,000. With respect to the distribution in redemption of the stock, Celeste has dividend income of QUESTION 7 10 points Save Answer Ashley owns 1,000 shares of Greenbird Corporation stock at a time when Greenbird has 2,000 shares of stock outstanding. The remaining shareholders are unrelated to Ashley. What is the minimum number of shares Greenbird must redeem from Ashley so that the transaction will qualify as a disproportionate redemption? (Round up to the nearest whole number.) QUESTION 8 10 points Save Answer Lynne, Kelly, and Colt own the stock in Blackstone Corporation (E & P of $900,000) as follows: Lynne, 600 shares: Kelly, 400 sharesi and Colt, 1,000 shares. Kelly is Lynne's daughter, and Colt is Lynne's brother. Blackstone Corporation redeems 400 of Lynne's shares (basis of $55,000) for $240,000. Lynne purchased the stock three years ago as an investment. With respect to the stock redemption, Lynne has long-term capital gain of QUESTION 9 10 points Save Answer Melissa and Juan, mother and son, each own 50% of the stock outstanding of Unicorn Corporation (E & P of $400,000) During the current year, Unicorn redeems all of Melissa's shares for $250,000. The transaction cannot qualify as a complete termination redemption if four years after the redemption, Melissa inherited Juan's shares in Unicorn as a result of his son's death. True False QUESTION 10 10 points Save Answer Ashton owns 900 shares of the 2,000 outstanding shares of Vulture Corporation (E & P of $900,000). None of the other shareholders of Vulture are related to Ashton. Ashton acquired his Vulture shares ten years ago for $80,000. Vulture has operated several trades or businesses for more than five years. In the current year, Vulture sells the assets of one of those trades or businesses and distributes the proceeds from the asset sale to the shareholders in a pro rata stock redemption. In this transaction, Ashton receives $250,000 in redemption of 400 shares of Vulture. As a result of this transaction, Ashton will recognize dividend income of