Gary owns 100 shares of common stock

(class A) in Justine Inc. which he acquired on October 10, 2009, for $5,000. On July 8, 2019, Gary received 20 shares of class B common stock in a proportionate distribution. At the time of the distribution the fair market values of the class A and class B stock were $75 and $45 per share, respectively. Justine’s current E&P for 2019 was $60,000. On August 18, 2019, Gary sold the 20 shares of class B stock for $1,000.

a. What are the tax consequences of the distribution on July 8, 2019, to Gary?

b. What are the tax consequences of the sale on August 18, 2019, for Gary?