Helen, Greg, and Wanda own the stock in HGW Corporation with earnings and profits of...
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Helen, Greg, and Wanda own the stock in HGW Corporation with earnings and profits of $900,000 as follows: Helen, 600 shares; Greg, 400 shares; and Wanda, 1,000 shares. Greg is Helens son, and Wanda is Helens sister. HGW Corporation redeems 400 of Helens shares with a basis of $55,000 for $240,000. Helen purchased the stock three years ago as an investment. With respect to the stock redemption, Helen has:
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Dividend income of $185,000
Dividend income of $240,000
Long-term capital gain of $185,000
Long-term capital gain of $240,000
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