Select the answer that best describes what happens when shareholders receive a series of distributions, not part of an installment obligation, covering 2 or more consecutive tax years in redemption of all of the stock of a corporation pursuant to a plan intended to result in the complete liquidation of the corporation. a. The shareholders will be allowed to recover their respective basis in the stock before recognizing any gains.
b. The shareholders will treat the distributions as dividends to the extent of the corporation’s earnings and profits.
c. The shareholders will recognize a pro rata portion of the gain in each of the years that distributions are received.
d. No losses from the transactions will be deductible.

Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?