Gene purchased all of the stock of Parkside Corporation for $180,000. During 2015, the corporation redeemed...
Gene purchased all of the stock of Parkside Corporation for $180,000. During 2015, the corporation redeemed one-third of the stock for $270,000. It has been determined that the transaction is properly classified as an IRC Section 301 redemption transaction. There have not been any intervening transactions that impact Genes basis in the stock of Parkside. What is Genes basis in the remaining stock of Parkside? A. $0, B. $60,000, C, $120,000, D. $180,000
Homework Answers
Total cost of shares = 180000
Share cost which is sold = 180000 * 1/3 = 60000
Remaining stock = 180000 - 60000
Remaining stock value = 120000
Option C is correct
Please please upvote it at the end thank you so much
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