Problem 1. Describe the mechanics of a stock redemption.
Problem 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?
Problem 3. List the four circumstances when redemption is tax-advantaged.
Problem 4. What is a stock dividend?
Problem 5. What is the general tax effect of a complete liquidation of a corporation?
Problem 6. What is the effect of a complete liquidation to stockholders under Section 331?