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Unformatted text preview: What are Rexs and Alex's basis in their shares after the redemption? b. Approximately 9 months after Steve's shares are redeemed; Lowell Corporation redeems 30 shares from Rex for $75,000. Just prior to the distribution, Lowell Corporation's current E&amp;P is $50,000, and its accumulated E&amp;P is $400,000. What is the amount and character of Rexs recognized gain or loss? What effect does the redemption have on Lowell's E&amp;P? What are Rexs and Alex's basis in their remaining shares after the redemption?...
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This note was uploaded on 09/09/2011 for the course TAX 5015 taught by Professor Kelliher,c during the Spring '08 term at University of Central Florida.
- Spring '08