Unrelated parties Carol, Betty, Sara, and Regal Corporation each own 30 of the outstanding shares of Arbor Corporation stock. In a transaction that qualifies as a partial liquidation, Arbor distributes $28,000 cash to each shareholder in exchange for four Arbor shares. Each redeemed share has a $1,700 basis to the shareholder and a $7,000 FMV. Requirement 

How does each shareholder treat the distribution for tax purposes? Treatment Amount Character Carol Betty Sarah Regal Corporation.

Answer rating: 100% (QA)

In line with the provisions of section 302b 4 if a corporation does not have a change in their o... View the full answer