Amy owns 500 shares of Dalek Corporation with a stock basis of $50,000. Total outstanding shares of Dalek Corporation are 1,000. Of the remaining 500 shares, 50 shares are owned by River (her daughter), and the remaining 450 shares of Dalek Corporation are owned by an unrelated shareholder. Dalek Corporation has E&P of $640,000.

What are the tax consequences to Amy if in a stock redemption; Dalek redeems 100 shares from Amy for $30,000?

What are the tax consequences to Amy if in a stock redemption; Dalek Corporation redeems 400 shares from Amy for $80,000?

What are the tax consequences to Amy if in a complete termination of her 500 shares; Dalek distributes $140,000 to Amy?

If you were advising Amy between the scenarios listed in part a-c above, which scenario would you advise Amy to proceed with? Amy wishes to pay the least amount of tax and has $150,000 of capital loss from other investments.