Broadbill Corporation (E&P of $1,650,000) has 1,000 shares of common stock outstanding. The shares are...
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Accounting
Broadbill Corporation (E&P of $1,650,000) has 1,000 shares of common stock outstanding. The shares are owned by the following:
Tammy 300 shares
Yvette 400 shares
Jeremy 300 shares.
Each paid $50/share for the stock four years ago. In the current year, Broadbill distributes $75,000 to Tammy in redemption of 150 of her shares. Is the distribution a dividend or a sale if:
a. Tammy and Jeremy are mother and son.
b. Tammy, Yvette, and Jeremy are siblings.
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