In the current year, Loon Corporation made a distribution in redemption of some of its shares.Loon incurred expenditures in connection with the redemption totaling $35,000 (accounting fees of $9,000, legal fees of $20,000, and brokerage fees of $6,000).The distribution was a qualifying stock redemption.How much of the $35,000 is deductible in the current year?
A)$6,000.
B)$9,000.
C)$29,000.
D)$35,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Expenditures incurred in connection with a stock redemption, such as accounting, legal, and brokerage fees, are generally not deductible for tax purposes.

In the Current Year, Loon Corporation Made a Distribution in Redemption