i need help in Part C which is schedule B

this this everything i have thats the reason i got stuck.

Julio Gorzales is in the 32% tax bracket. He acquired 3,500 shares of stock in Gray Corporation seven years ago at a cost of $200 per share. In the current year, Julio received a payment of $525,000 from Gray Corporation in exchange for 1,750 of his shares in Gray, Gray has E 8. P of $6,000,000. What income tax isability would Julio incur on the $525,000 payment in each of the following situations? Assume that Julio has no capital losses and taxpayers in the 32% tax bracket are subject to the long-term capital gains and qualified dividends tax rate of 15% a. The stock redemption qualifies for sale of exchange treatment. Julio has of 5 V. Julio's tax liabulity would be 1 Ferstack F Check My wor Under 5317(b), a stock redemption occurs when a corporation acquires its stock from a shareholder in exchange foc cash or other progerty. Although a sale of stock to an outsider invariably results in sale or exchange treatment, only a qualifying stock redemption is treated as a sale for tax purposes. Nonqualified stock redemptions are denied sale or exchange treatment because they are deemed to have the same effect as dividend distributions. b. The stock redemption does not qualify for sale or exchange treatment. Jullo has of 1 V. Julio's tax liability would be 1 Feedouck T Check My Work SCHEDULE B (Form 1040 ) Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Julio Gonzales Part I Interest (See instructions and the instructions for Form 1040, line 2b.) Note1 if you received a form 1099-INT, Form 1099-01D, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. Interest and Ordinary Dividends - Go to wwwilrs,gov/ScheduleB for instructions and the latest information. - Attach to Form 1040 or 10405R. OMB No. 1545-0074 2021 Attachment Sequence No, 08 1 List name of payec. If any interest is from a seller-financed mortgage and the buver used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer's social security number and address : Your social security number 123-45-6789 Amount 2 Add the amounts on line 1 3 Excludable interest on series EE and 1. U.S. savings bonds issued after 1989. Attach Form 8815 4. Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040SR, line 2b 1 2 Note: If line 4 is over $1,500, vou must complete Part III. Part II 5 List name of payer Gray Corporation (See instructions and the instructions for Form 1040, line 3b.) Note: if you recelved a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. Notes if line 6 is over $1,500, you must complete Part 1II. Julio Genzales is in the 32% tox bracket He acquired 3,500 shares of stock in Gray Corporation seven vears ago at a cost of 5200 per share. In the current year, Julio received a payment of 5525,000 from Gray Corporation in exchange for 1,750 of his shares in Gray. Gray has E \& P of $6,000,000. What income tax lablity would Julio incur on the $525,000 payment in each of the following situations? Assume that Julio has no capital losses and taxpayers in the 32% tax bracket are subject to the long-term capital gains and qualified dividends tax rate of 15% a. The stock redemption qualities for sale or exchange treatment. Jutio has P of 3 . Julio's tax liablity would be 1 Feostack Coeck My Work: Under $317(b), a stock redemption occurs when a corporation acquires its stock from a shareholder in exchange for cash or other ptoperty. Although a sale of stock to an outsider invariably results in sale or exchange treatment, only a qualifying stock redemption is treated as a sale for tax purposes. Nonqualified stock redemptions are denied sale or exchange treatment because they are deemed to have the same effect as dividend distributions. b. The stock redemption does not qualify for sale or exchange treatment. Julio has of 5 V. Julio's tax liability would be t Feedback T Check My Work Correct c. For part (b), prepare Julio's Schedule B (Form 1040) to reflect the tax reporting required of the transaction. SCHEDULE B (Form 1040) Department of the Treasury Internal Revenue Service (99) Interest and Ordinary Dividends Go to ww.irs. gov/Schedules for instructions and the latest information. - Attach to Form 1040 or 1040 -5R. OMB No 15450074 2021 Astachment Sequence No. 08 Name(s) shown on return Julio Gonzales Your social security number 123456789 Part I Interest (See instructions and the instructions for Form 1040, line 2b.) Notes if you recelved a Form 1099-INT, Form 1099.010, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that forti. 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer uled the property as a personal residence, see the instructions and list this interest first. Also, show that buyer's social security number and address 2 Add the amounts on line 1 3 Excludable interest on series EE and I U.S. savings bonds issued after 19.89. Attach Fortm 8815 4 Subtract line 3 from line 2. Enter the result here and on Form 10d0 or 1040.5R, line 2b Amount 1 Note: If line 4 is over $1,500, you must complete Part III Amount 5 List name of payer > Gray Comporation the instructions for Form 1040, line 3b.) Note: if you recelved a Form 1099-DIV or substbtute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total bere and on Form 1040 or 10405R, line 36 Note: if line 6 is over $1,500, you must complete Part itt. For Paperwork Reduction Act Notice, see your tax return instructions. Cat, No. 17146N Schedule B (Form 1040) 2021