Hannah, Greta, and Winston Own the Stock in Redpoll Corporation

question 55

Multiple Choice

Hannah, Greta, and Winston own the stock in Redpoll Corporation (E & P of $900,000) as follows: Hannah, 600 shares; Greta, 400 shares; and Winston, 1,000 shares. Greta is Hannah's daughter, and Winston is Hannah's brother. Redpoll Corporation redeems 400 of Hannah's shares (basis of $55,000) for $240,000. Hannah purchased the stock three years ago as an investment. With respect to the stock redemption, Hannah has:

• A) Dividend income of $185,000.
• B) Dividend income of $240,000.
• C) Long-term capital gain of $185,000.
• D) Long-term capital gain of $240,000.
• E) None of the above.

---

Definitions:

Earning an A

Achieving the highest grade in an academic assessment, indicative of excellent understanding or performance.

Psychology Graduate Program

A psychology graduate program is an advanced course of study that focuses on theoretical, experimental, and applied aspects of psychology, leading to a master's or doctoral degree.

Bachelor's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).

Action Plan

A detailed proposal for doing or achieving something, outlining all the necessary steps and actions.