Ali is in the 35% tax bracket.He acquired 1,000 shares of stock in Cardinal Corporation seven years ago for $100 a share.In the current year,Cardinal Corporation (E & P of $1 million)redeems all of his shares for $300,000.What are the tax consequences to Ali if:

Question

Quizplus · Accepted Answer

The Answer of Ali is in the 35% tax bracket.He acquired 1,000 shares of stock in Cardinal Corporation seven years ago for $100 a share.In the current year,Cardinal Corporation (E & P of $1 million)redeems all of his shares for $300,000.What are the tax consequences to Ali if:

Ali Is in the 35% Tax Bracket