10. Seven years ago, Eleanor transferred property she had used in her sole proprietorship to Blue Corporation for 1,000 shares of Blue Corporation in a transaction that qualified 351. The assets had a tax basis to her of $400,000 and a fair market value of 2,000,000 on the date of the transfer. In the current year, Blue Corporation with E&P of $1 million, redeems 800 shares from Eleanor for $1675,000. Required: a. Does the Redemption transaction qualify for sale/exchange treatment under IRC 302 (b)(1)? Why/Why not? b. Does the Redemption transaction qualify for sale/exchange treatment under IRC 302 (b)(2)? Why/Why not? 11. Ethel, Hannah, and Samuel, unrelated individuals, own the stock in Broad Corporation (E & P of $700,000) as follows: Ethel, 300 shares; Hannah, 300 shares; and Samuel, 400 shares. Broad redeems 250 of Samuel's shares for $250,000. Samuel's stock is a capital asset which he purchased over three years ago for 350,000. Required: a. What % of Broad Corporation did Samuel own before the redemption transaction b. What % of Broad Corporation did Samuel own after the redemption transaction c. Is this transaction a Qualified Redemption? YES or NO d. How will Samuel report the $250,000 he received