What are the tax consequences of each of the sales

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Sheri owns 800 of the 1,500 outstanding shares of Carney Corporation, which she bought a number of years ago for $20 each. She needs money for her daughter's tuition but does not want to sell all of her shares in the corporation. Carney has $200,000 in earnings and profits.

a. What are the tax consequences if the corporation buys 150 of her shares for $15,000?

b. What are the tax consequences if the corporation buys 300 of her shares for $10,000?

c. If Sheri's father owns the other 700 shares of the corporation, what are the tax consequences of each of the sales?

Reference no: EM13539831

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