At the time of his death, Barney owned 60 percent of Orange Corporation, a closely held corporation. His interest in Orange was valued at $3,500,000 and his basis in his shares was equal to $1,600,000. Funeral and administration expenses totaled $400,000. His other unpaid obligations were equal to $1,500,000. The balance of Barney's estate consisted of real property and publicly traded stock valued at $8,000,000. These assets and the Orange stock comprised Barney's gross estate. Federal and state estate and inheritance taxes imposed on Barney's estate were equal to $2,200,000. (a) If the corporation redeemed $2,600,000 of Orange stock, how would that redemption be treated for federal income tax purposes? (b) How would your answer to part (a) change if the corporation redeemed all of Barney's interest in Orange Corporation? (c) How would your answer to part (a) change if the total value of Barney's interest in Orange Corporation was equal to $2,600,000?