Problem
• What is the stock ownership interest of each Square One shareholder before the redemption?
• Is the proposed stock redemption a sale of stock or dividend?
• Is Square One a personal holding company?
• If Square One is a personal holding company, what additional tax would it have to pay?
• What year-end tax planning action could Square One take to ensure it is not subject to the personal holding company tax?
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.