$31$ LO$\mathrm{.}1,4$ Sunset Corporation, with E & P of $$400,000,$ makes

a cash distribution of $$120,000$ to a shareholder. The

shareholder$$s basis in the Sunset stock involved is $$50,000.$

A$.$ Determine the tax consequences to the shareholder if the

distribution is a nonqualified stock redemption.

B$.$ Determine the tax consequences to the shareholder if the

distribution is a qualifying stock redemption.

C$.$ Determine the tax consequences to the shareholder if the

distribution is pursuant to a complete liquidation of Sunset.