What shares after the redemption will be

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Problem 1: Mary owns 500 shares of the Marina Corporation and her total basis in her shares is $50,000. Marina Corporation redeems 200 of Mary's shares. Assume the redemption is treated as a dividend for tax purposes. In this case Mary's basis in her remaining 300 shares after the redemption will be;

a. $30,000.

b. $20,000.

c. zero.

d. $50,000.

e. none of the above.

Reference no: EM132703469

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