Aris Ltd. has 2,000,000 shares outstanding with a total PUC of $30,000,000. The Company is a CCPC and has no balance in its GRIP account. John Aris owns 10 percent of these shares. They were acquired at a total cost of $2,250,000. During the current year, John's shares were redeemed by the corporation for proceeds of $3,500,000. Which of the following amounts must be included in John's income as a result of this redemption?

Question

Quizplus · Accepted Answer

The Answer of Aris Ltd. has 2,000,000 shares outstanding with a total PUC of $30,000,000. The Company is a CCPC and has no balance in its GRIP account. John Aris owns 10 percent of these shares. They were acquired at a total cost of $2,250,000. During the current year, John's shares were redeemed by the corporation for proceeds of $3,500,000. Which of the following amounts must be included in John's income as a result of this redemption?

Aris Ltd Has 2,000,000 Shares Outstanding with a Total PUC of of $30,000,000