Aaron, an individual taxpayer in the 28% tax bracket, acquired stock in AB Corporation 5 years ago for $2,000. AB Corp.

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answerhappygod
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Aaron, an individual taxpayer in the 28% tax bracket, acquired stock in AB Corporation 5 years ago for $2,000. AB Corp.

Post by answerhappygod »

Aaron, an individual taxpayer in the 28% tax bracket, acquired
stock in AB Corporation 5 years ago for $2,000. AB Corp. redeemed
all Aaron's shares for $3,000 in 2016.
(a) What is Aaron's tax liability from this transaction if it
qualifies for a sale or exchange treatment?
(b) What is Aaron's tax liability from this transaction if it
qualifies for a dividend treatment?
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