Exercise 6-25 (LO. 1) During the current year, Gnatcatcher, Inc., (E & P of $1,000,000) distributed $200,000 each to Brandi and Yuen in redemption of some of their Gnatcatcher stock. The two shareholders acquired their shares five years ago. Each shareholder is in the 32% tax bracket, and each had a $45,000 basis in the redeemed stock. Assume taxpayers in the 32% tax bracket are subject to the long-term capital gains and qualified dividends tax rate of 15%. a. Assume that the distribution to Brandi is a qualifying stock redemption. The distribution is taxed as a and Brandi's tax liability on the distribution is $ b. Assume that the distribution to Yuen is a nonqualified stock redemption. The distribution is taxed as a and Yuen's tax liability on the distribution is $