Answer: D. $75000 capital gain and a Tax basis in each of his remaining shares of $1000
Step-by-step explanation:
Sven Paid $1000 per share, He sold 75 shares back to the company at a price of $2000 per share thus making a capital profit of $ 1000 x 75 = $ 75000
Tax consequences for Sven regarding share redemption is the capital of $75000 and a tax basis in each of his remaining shares of $1000