Averhart Corporation $($E & P of $$1$ million$)$ has $2,000$ shares of common stock outstanding owned by unrelated parties as follows: Katherine, $1,000$ shares, and Anna, $1,000$ shares. Both Katherine and Anna paid $$150$ per share for the Averhart stock $12$ years ago. In May of the current year, Averhart distributes land held as an investment $($basis of $$180,000,$ fair market value of $$390,000)$ to Katherine in redemption of $350$ of her shares.

a$.$ What are the tax results to Katherine on the redemption of her Averhart stock?

b$.$ What are the tax results to Averhart Corporation on the distribution of the land?