Discuss the advantages and disadvantages of redeeming the stock of a major shareholder in a closely-held or family-owned

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Discuss the advantages and disadvantages of redeeming the stockof a major shareholder in a closely-held or family-owned businessto the shareholder and the corporation. Specifically, address thetreatment of the amounts received by the shareholder, for example,whether it is a Section 301 distribution or a redemption of stock(capital gain/loss treatment). Also, address the constructiveownership rules of Section 318. Further, discuss the tax effects tothe redeeming corporation.