Problem 19-49 (Algorithmic) (LO. 8) Julio Gonzales is in the 32% tax bracket. He acquired 2,500 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 $375,000 from Gray Corporation in exchange for 1,250 of his shares in Gray. Gray has E & P of $6,000,000. What income tax liability would Julio incur on the $375,000 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 or exchange treatment. Julio has a capital gain of $ X. Julio's tax liability would be $ x. Feedback Check My Work Noncorporate shareholders generally prefer to have a stock redemption treated as a sale or exchange rather than as a dividend distribution. b. The stock redemption does not qualify for sale or exchange treatment. Julio has dividend income Feedback Check My Work Partially correct of $ . Julio's tax liability would be $