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Peter Owns All 100 Shares of Parker Corporation's Stock

Question 27

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Peter owns all 100 shares of Parker Corporation's stock. His basis in the stock is $30,000. Parker Corporation has $300,000 of E&P. Parker Corporation redeems 25 of Peter's shares for $90,000. What are the consequences to Peter and to Parker Corporation?

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Since Peter still owns 100% of Parker Co...

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