1.I own 100 shares out of 400 outstanding of the MSH corporation. I acquired the shares for $1 per share, and they are now worth $5 per share. MSH corporation distributes $500 to me in complete redemption of my 100 shares, which I remitted back to MSH corporation. MSH corporations accumulated E&P prior to the distribution was $4,000.

Q: What's the tax result to me and MSH Corporation if MSH corporation distributed $400 to me in exchange for 80 of my shares, and I sold the other 20 shares to an unrelated person for $100?