Final answer:
The total expense for redeeming Pam's 93 shares in Comet Company is calculated by multiplying the number of shares (93) by the redemption price per share ($1,860), which results in $173,180. However, this figure does not match any of the provided answer choices, indicating a potential error in the question or answer options.
Step-by-step explanation:
The question addresses the calculation of the total expense for redeeming shares owned by Pam in Comet Company. To determine the total expense for redeeming Pam's shares, we must multiply the number of shares being redeemed by the redemption price per share. In this scenario, Pam wants to redeem 93 shares for $1,860 each. Therefore, the calculation is as follows:
Total expense for redeeming shares = Number of shares × Redemption price per share
Total expense for redeeming shares = 93 shares × $1,860
Total expense for redeeming shares = $173,180
Note that this amount represents the cash outflow for Comet Company to buy back Pam's shares and does not require any consideration of Pam's adjusted tax basis in the shares to determine the total redemption expense to the company. However, the answer options given do not include $173,180, suggesting there may be an error in the question or the options provided.