$1.($Partial Liquidation$)$ Alpha Corporation operates a book publishing business $($Books$)$ and a bar exam review course $($Cram$)$ as divisions. Alpha$$s single class of common stock outstanding is owned in equal shares by Michael, Pamela $($Michael$$s wife$)$ and Iris Corporation. Neither Michael nor Pamela owns any stock in Iris. Alpha also owns all the stock of Beta Corporation, a separately incorporated company which is engaged in the beta processing business, and it directly owns a diversified securities portfolio.

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What are the shareholder level tax consequences of the of the following transactions?

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$($a$)$ Alpha has operated Books and Cram for more than five years and it distributes the assets of Books to its three equal shareholders in redemption of $50$ share from each shareholder. Any different result if the redemption is made without actual surrender of shares?