Unrelated parties Amy, Beth, Carla, and Delta Corporation each own 25 of the 100 outstanding shares of

Question:

Unrelated parties Amy, Beth, Carla, and Delta each own 25 of the 100 outstanding shares of Axle stock. In a transaction that qualifies as a partial liquidation, Axle distributes $20,000 cash to each shareholder in exchange for five Axle shares. Each redeemed share has a $1,000 basis to the shareholder and a $4,000 FMV. How does each shareholder treat the for tax purposes?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...