Describe the mechanics of a stock redemption


Question 1. Describe the mechanics of a stock redemption.

Question 2. A stock redemption may be viewed either as a distribution or as a sale/exchange. From a tax perspective, which view is more advantageous for the shareholder and why?

Question 3. List the four circumstances when redemption is tax-advantaged.

Question 4. What is a stock dividend?

Question 5. What is the general tax effect of a complete liquidation of a corporation?

Question 6. What is the effect of a complete liquidation to stockholders under Section 331?

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Accounting Basics: Describe the mechanics of a stock redemption
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