(Answered) Question - sheldon owns 600 shares of the 1000 shares

Accounting

Question - Sheldon owns 600 shares of the 1,000 shares outstanding of Hawk Corporation (E&P of $500,000). The remaining stock in Hawk is owned by several shareholders unrelated to Sheldon. In the current year, Hawk Corporation redeems 75 shares of Sheldon's stock for $75,000. Sheldon had acquired all of his shares 10 years ago at a cost of $100 per share. What are the tax consequences to Sheldon and Hawk Corporation as a result of the stock redemption?

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