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.