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Question 1 (6.66 points) Amanda, Barbara, and Carol, unrelated individuals, own all of the stock in New Corporation (E & P of
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Answer #1

ANSWER

OPTION (D)

REASON

new Redeems 150 of amands share on the basis $ 600,000.but it reedems for the value.

$1,200,000.

capital gain = $1,200,000 - $600,000= $600,000

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