What is the basis of the property to the shareholder in a qualifying stock redemption for Finch Corporation?

In a qualifying stock redemption scenario, the basis of the property received by a shareholder typically reflects the original investment or the adjusted basis in the stock that is redeemed. However, in the specific case of Finch Corporation's qualifying stock redemption, the answer indicating a basis of zero suggests that certain conditions must be met to result in a non-taxable event for the shareholder.

If the stock redemption qualifies under certain provisions of the tax code, such as being treated as a sale rather than a dividend, the gain or loss recognized may not apply to the basis of the shares received. Rather, a shareholder may effectively end up with a basis of zero in the redeemed stock if it has been fully offset or rendered unnecessary due to specific tax provisions.

Additionally, if this redemption qualifies for tax-free treatment, it may not lead to any taxable gain or loss which correlates to a zero basis in this particular context. This situation often arises when the stock’s value has decreased substantially or if certain exclusions apply based on the shareholder's individual tax situation or the nature of the redemption.

As for the other choices provided, they likely represent either the original basis of various scenarios that did not take into account the specific tax treatment applicable to the redemption or may imply various other underlying transactions