$1.$ Magpie Corporation has $5,000$ shares of common stock outstanding. Josephina owns $1,800$ shares, Josephina$$s daughter owns $1,200$ shares, Josephina$$s brother owns $1,000$ shares, Tern Corporation owns $800$ shares, and Petrel Corporation owns $200$ shares. Josephina owns $48\%$ of the stock of Tern Corporation. $(2$ points each$)$

Assume Josephina owns $80\%$ of the stock of Tern Corporation. Also, assume that Magpie redeems $600$ shares of Josephina$$s shares and $300$ shares of Tern Corporation$$s$.$ What is the tax treatment for Josephina?