Volde Corporation is owned 60% (60 shares) by Lucius, 20% (20 shares) by Peter and 20% (20 shares) by Bella. Volde has E&P of $180,000. Lucius’ stock basis is $90,000, Peter’s stock basis is $40,000 and Bella’s stock basis is $10,000. Evaluate each independent and separate scenario. (8 Points) What is the tax result to Peter if Volde redeems 10 shares for $50,000? Bella is Peter’s aunt. 

What is the tax result to Lucius if Volde redeems 50 shares for $250,000? Bella is Lucius’s spouse. 

What is the tax result to Bella and Volde if in a non liquidating distribution, Volde distributes property with value of $250,000 and basis of $100,000. Bella is Lucius best friend (but not spouse).

Answer rating: 100% (QA)

Scenario 1 Peters Redemption of 10 Shares If Volde redeems 10 shares for 50000 the first step is to calculate the amount of the distribution Since Pet... View the full answer