Qualify as a disproportionate redemption


Lucinda owns 1,100 shares of Blackbird Corporation stock at a time when Blackbird has 2,000 shares of stock outstanding. The remaining shareholders are unrelated to Lucinda. What is the minimum number of shares Blackbird must redeem from Lucinda so that the transaction will qualify as a disproportionate redemption?

a. 880.

b. 484.

c. 393.

d. 220.

e. None of the above.

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Accounting Basics: Qualify as a disproportionate redemption
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