Bristlebird Corporation (E & P of $700,000) Has 3,000 Shares

question 6

Multiple Choice

Bristlebird Corporation (E & P of $700,000) has 3,000 shares of common stock outstanding. Juan owns 1,500 shares and his wife, Roberta, owns 1,500 shares. Juan and Roberta each have a basis of $90,000 in their Bristlebird stock. In the current year, Bristlebird Corporation redeems 1,000 shares from Juan for $250,000. With respect to the distribution in redemption of the Bristlebird stock:

• A) Juan has dividend income of $250,000.
• B) Juan has dividend income of $190,000.
• C) Juan has a capital gain of $250,000.
• D) Juan has a capital gain of $190,000.
• E) None of the above.

---

Definitions:

Compelling Sense

An irresistible urge or an intense feeling that drives action.

Executive Success

A measure of the achievement and progress towards goals that an individual in an executive position realizes, often reflecting leadership effectiveness and company performance.

Influence

The power to impact the personality, growth, or actions of an individual or entity, or the impact resulting from this.

Control

The power to influence or direct people's behavior or the course of events.