Write a memorandum comparing the tax consequences

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Question - Amy, Beth, and Meg each own 100 of the 300 outstanding shares of Theta Corporation stock. Amy wants to sell her shares, which have a $40,000 basis and a $100,000 FMV. Either Beth and/or Meg can purchase Amy's shares (50 shares each) or Theta can redeem all of them. Theta has $150,000 E&P balance.

Write a memorandum comparing the tax consequences of the two options to teh three sisters, who actively manage Theta.

Reference no: EM131830349

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