This is an individual assignment. The memo should not exceed two pages and stude

WRITE MY ESSAY

This is an individual assignment. The memo should not exceed two pages and students should use the tax memo template provided. However, the answer should be a full 2 pages (double spaced, times new roman 12pt., 1-inch margins) Do not repeat the question in the answer. Each memo must include an explanation of the relevant code sections, regs and/or other relevant controlling authority such as case law. Don’t just cite the rules or cases, explain them and their application to the specific facts in the questions. Any memo with a similarity score exceeding 24% on Turnitin will be rejected subject to the professor’s review and sole discretion. AI % will be an F
Questions:
1.Threads Inc. wants to buy TicTak Corp. for $500. Purls (the sole shareholder of TicTak) wants to receive $2,000 for his 200 shares. TicTak has $1,500 available in cash and can redeem 150 of Purl’s shares for $1,500. Immediately after the redemption, Threads buys Purl’s remaining 50 shares for $500. At the end of the two transactions, Threads owns 100% of the shares in TicTak. What is the tax treatment to Purl? Applying Zenz, what is the buyer’s bass?
2.Assume the facts as in Question 1 except, if Threads bought all shares of TikTac without any redemptions, would Thread’s basis in the stock be different?
3.If Thread is intending to resell the TicTak stock for $3000 after the acquisition, would you advise Thread to acquire the stock in a Zenz transaction or without the redemption? Why or why not?

WRITE MY ESSAY