please help me figure this accounting/tax problem out
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Updated on: 12/16/2019 06:54 PM Due on: 12/16/2019
M Corp (a "C" corporation) has 400 shares of common stock outstanding. A and B, individuals, each own 200 shares. Each has a stock basis of $30000. M Corp's E&P is $700000. Indicate the tax treatment to A in each of the following independent situations:
a) A and B are unrelated. M redeems 100 of A's shares for $200000
b) A and B are siblings. M redeems 100 of A's shares for $200000
c) A and B are parent/child. M redeems 100 of A's shares for $200000
d) A and B are parent/child. M redeems 200 of A's shares for $400000, and A agrees not to have any interest whatsoever in M for 10 years
e) A and B are unrelated. M redeems 60 of A's shares for $120000
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