Ivory Corporation (E & P of $650,000)has 1,000 shares of common stock outstanding owned by unrelated parties as follows: Veronica,500 shares,and Tommie,500 shares.Veronica and Tommie each paid $125 per share for the Ivory stock 12 years ago.In May of the current year,Ivory distributes securities held as an investment (basis of $140,000,fair market value of $250,000)to Veronica in redemption of 200 of her shares.

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The Answer of Ivory Corporation (E & P of $650,000)has 1,000 shares of common stock outstanding owned by unrelated parties as follows: Veronica,500 shares,and Tommie,500 shares.Veronica and Tommie each paid $125 per share for the Ivory stock 12 years ago.In May of the current year,Ivory distributes securities held as an investment (basis of $140,000,fair market value of $250,000)to Veronica in redemption of 200 of her shares.

Ivory Corporation (E & P of $650,000)has 1,000 Shares of Common