Comet company is owned equally by pat and his sister pam, each of whom hold 100 shares in the company. comet redeems 50 of pam's shares on december 31, 20x3, for $1,000 per share in a transaction that pam treats as an exchange for tax purposes. comet has total e& p of $250,000 on december 31, 20x3. what are the tax consequences to comet because of the stock redemption?

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.