McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

تمرين 12

Oriole Corporation, a privately held company, has one class of voting common stock, of which 1,000 shares are issued and outstanding.The shares are owned as follows:
Larry is considering retirement and would like to have the corporation redeem all of his shares for $400,000.a.What must Larry do or consider if he wants to guarantee that the redemption will be treated as an exchange?
b.Could Larry act as a consultant to the company and still have the redemption treated as an exchange?