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Question 1 10 points Five years ago, Eleanor transferred property she had used in her sole proprietorship to Blue Corporation for 1,000 shares of...

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Question 1 10 points Five years ago, Eleanor transferred property she had used in her sole proprietorship to Blue Corporation for 1,000 shares of Blue Corporation in a transaction that qualified under § 351. The assets had a tax basis to her of $400,000 and a fair market value of $550,000 on the date of the transfer. In the current year, Blue Corporation (E & P of $1 million) redeems 100 shares from Eleanor for $290,000 in a transaction that qualifies for sale or exchange treatment. With respect to the redemption, Eleanor will have a: Question 8 10 points Save Violet Corporation is the sole shareholder of Finch Corporation , which it hopes to sell within the next three years. The Finch stock (basis of $28 million) is currently worth $33 million, but Violet believes that it would be easier to find a buyer if it was worth less. To lower the value of its stock, Finch distributes $3 million cash to Violet (sufficient E & P exists to cover the distribution). At a later date, Violet sells Finch for $30 million.
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Question 9 10 points Save Swan, a calendar year corporation, has a deficit in current E & P of $200,000 and a $580,000 positive balance in accumulated E & P. If Swan determines that a $1 million distribution to its shareholders is appropriate at some point during the year, what is the maximum amount of the distribution that could potentially be treated as a dividend? Question 10 10 points Save Hawk Corporation has 300 shares of stock outstanding: Marina owns 60 shares, Kent owns 90 shares, and Tom owns 75 shares. Blackbird Partnership owns the remaining 75 shares of stock in Hawk Corporation. Marina, Kent, and Tom, all unrelated, are equal partners of Blackbird Partnership. With respect to the stock attribution rules under § 318:
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