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

question 75

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 $30,000 (accounting fees of $10,000,legal fees of $15,000,and brokerage fees of $5,000) .The distribution was a qualifying stock redemption.How much of the $30,000 is deductible in the current year?

• A)$0.
• B)$5,000.
• C)$15,000.
• D)$30,000.
• E)None of the above.

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Definitions:

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