In the Current Year, Loon Corporation Made a Distribution in Redemption

question 88

Multiple Choice

In the current year, Loon Corporation made a distribution in redemption of some of its shares.Loon incurred expenditures in connection with the redemption totaling $35,000 (accounting fees of $9,000, legal fees of $20,000, and brokerage fees of $6,000) .The distribution was a qualifying stock redemption.How much of the $35,000 is deductible in the current year?

• A)$6,000.
• B)$9,000.
• C)$29,000.
• D)$35,000.
• E)None of the above.

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Definitions:

Legislative Business

The range of activities conducted in a legislative body including the introduction, debate, and passing of laws.

Federalists

A political group in the early United States advocating for a strong federal government and the ratification of the Constitution.

New England Merchant

Refers to businessmen in the early American colonial period based in the New England region who were involved in trade and commerce, often engaged in shipping goods across the Atlantic.

Urban Artisan

A skilled worker or craftsman who lives and works in an urban area, often producing handmade goods or providing specialized services.