Question: Exercise 6 - 3 1 ( Algorithmic ) ( LO . 1 , 4 ) Sunset Corporation, with E & P of $ 3 4

Exercise 6-31(Algorithmic)(LO.1,4) Sunset Corporation, with E & P of $344,200, makes a cash distribution of $103,260 to a shareholder. The shareholder's basis in the Sunset stock involved is $41,304. a. Determine the tax consequences to the shareholder if the distribution is a nonqualified stock redemption. The shareholder has dividend incomea return of capitala capital gain of $fill in the blank 2. b. Determine the tax consequences to the shareholder if the distribution is a qualifying stock redemption. The shareholder has dividend incomea return of capitala capital gain of $fill in the blank 4. c. Determine the tax consequences to the shareholder if the distribution is pursuant to a complete liquidation of Sunset. The shareholder has dividend incomea return of capitala capital gain of $fill in the blank 6.

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