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Leon Owns 400 Shares of the 1,000 Outstanding Shares of Crane

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Leon owns 400 shares of the 1,000 outstanding shares of Crane Corporation (E & P of $650,000) .None of the other shareholders of Crane are related to Leon.Leon acquired his Crane shares ten years ago for $60,000.Crane has operated several trades or businesses for more than five years.In the current year,Crane sells the assets of one of those trades or businesses and distributes the proceeds from the asset sale to the shareholders in a pro rata stock redemption.In this transaction,Leon receives $180,000 in redemption of 250 shares of Crane.As a result of this transaction,Leon will recognize:


Definitions:

Delusion Of Persecution

A false belief where a person thinks that others are intentionally trying to harm them.

Poison

A substance that is capable of causing illness or death when introduced into or absorbed by a living organism.

REM Sleep

A phase of sleep characterized by rapid eye movements and a high level of brain activity, often associated with vivid dreaming.

Low Nicotine

Refers to products, especially cigarettes, that contain a reduced amount of nicotine, aimed at lessening dependency and health risks associated with nicotine.

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