Liang Corporation has only one (1) class of stock outstanding consisting of two hundred (200)...
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Liang Corporation has only one (1) class of stock outstanding consisting of two hundred (200) shares owned by Denee and Karen who are unrelated. Denee owns one hundred (120) shares and Karen owns eighty (80) shares. Liang Corporation redeemed (bought back) forty-eight (48) of Denee's shares for $300 per share ($14. 400 total). Denee paid $200 per share for her stock in Liang Corporation three (3) years ago. Assuming that Liang Corporation has substantial Earings And Profits (E&P), how wil Denee be taxed on the redemption of her stock?
Dividend Income of $14,400. O Long- Term Capital Gain of $9,600. Long-Term Capital Gain of $14,400. Long-Term Capital Gain of $4,800.
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