1. Alfred and Billy are unrelated and the sole shareholders of Xinity Corporation (a C-Corp). Alfred owns 750 shares and Billy owns 250 shares. The corporation buys back 550 of Alfred’s shares for $100 each. Alfred has a $50 basis per share before the buy back. Xinity has $60,000 current E and P with 0 accumulated E and P. a) (35 points) What will be the tax effects of this corporate buy back of shares on Alfred and Xinity? b) (25 points) What result if Alfred is Billy’s son on Xinity and Alfred? 2) (20 points) Please write no more than 1 page on the following: From the materials for the week, what are some of the differences between an S-Corp and a C-Corp?