What Are the Consequences of a Stock Redemption to the Distributing

Multiple Choice

What are the consequences of a stock redemption to the distributing corporation?

A) The corporation recognizes a gain or loss as if it had sold the distributed property for its FMV immediately before the redemption.
B) If the redemption is treated as a dividend, E&P is reduced in the same manner as for a regular dividend.
C) If the redemption is treated as a sale, only accumulated earnings and profits is reduced.
D) All of the above are correct.