Answer:
The Pheasnt Corporation is subject to special tax treatment, including securities, financial institution, tax exempt entities.
In view of the varying nature of such tax consequences, each stockholder is urged to consult his, her or its can tax advisor as to the specific tax consequences of a redemption including the applicability of federal state local and foreign tax Laws.
The redemption of shares will be treated as a sale or exchange hence in the given case the Pheasant Corporation will be imposed the of capital gain on sale of shares.
Explanation:
