Sunset Corporation, with E&P of $400,000, makes a cash distribution of $120,000 to a shareholder. The...

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Sunset Corporation, with E&P of $400,000, makes a cash distribution of $120,000 to a shareholder. The shareholder's basis in the Suns stock is $50,000. a. Determine the tax consequences to the shareholder if the distribution is a nonqualified stock redemption. The shareholder has dividend income of $ 0X. b. Determine the tax consequences to the shareholder if the distribution is a qualifying stock redemption. The shareholder has a capital gain of $ 0x Determine the tax consequences to the shareholder if the distribution is pursuant to a complete liquidation of Sunset. The shareholder has a capital gain Sunset Corporation, with E&P of $400,000, makes a cash distribution of $120,000 to a shareholder. The shareholder's basis in the Suns stock is $50,000. a. Determine the tax consequences to the shareholder if the distribution is a nonqualified stock redemption. The shareholder has dividend income of $ 0X. b. Determine the tax consequences to the shareholder if the distribution is a qualifying stock redemption. The shareholder has a capital gain of $ 0x Determine the tax consequences to the shareholder if the distribution is pursuant to a complete liquidation of Sunset. The shareholder has a capital gain