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C11-Chp-13-1D-Stock Redemption

C11-Chp-13-1D-Stock Redemption - Case A Case B Cash...

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5a1f59d75f4d4674dd616fb200acd3e8c1c48147.xls Page 1 of 1 Corporate Stock Redemption Book Val. Book Val. Cash $40,000 Stock $30,000 Land 60,000 Retained Earn. 70,000 Totals $100,000 Totals 100,000 Ed owns 25% of stock (basis: $10,000). Corporation redeems all of Ed's stock for cash of $25,000.
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Unformatted text preview: Case A Case B Cash distributed $25,000 $25,000 1 Ed's dividend income 2 Ed's capital gain 3 Ed's ending stock basis Case B. Ed had owned 100% of stock (basis $40,000). Corp redeemed 25% of his stock for $25,000. 1 2 3 1 2 3...
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