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Hazel, Emily, and Frank are families relatives, own the stock in Wren Corporation as follows:...

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Accounting

Hazel, Emily, and Frank are families relatives, own the stock in Wren Corporation as follows: Hazel, 100 shares; Emily, 100shares; Frank, 100 shares. Hazel redeems 25 shares(the basis for stock is $2000/share) for $100,000. What the tax effect for Hazel?

  1. Hazel has long term capital gain for $60,000
  2. Hazel has long term capital gain for $100,000
  3. Hazel has dividend income $100,000
  4. Hazel has $0 and it qualified partial redemption

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