What eleanor will have

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Problem 1: Eleanor owns 50 shares of Blue Corporation. In the current year, Blue Corporation (E & P $800,000) redeems 25 shares from Eleanor for $500,000 in a transaction that does not qualify for sale or exchange treatment (is not a good redemption). With respect to the redemption, Eleanor will have

a. $400,000 capital gain.

b. $450,000 dividend.

C.$450,000 capital gain.

d. $500,000 dividend.

Reference no: EM132702691

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