Par. 4. Section 1.305-7 is amended by revising the fourth sentence in the concluding text of paragraph (a) to read as follows:
(a) * * *
* * * For example, where a redemption premium exists with respect to a class of preferred stock under the circumstances described in Sec. 1.305-5(b) and the other requirements of this section are also met, the distribution will be deemed made with respect to such preferred stock, in stock of the same class. * * *
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