Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $3,900, and Clyde owns the remaining 40 shares with a basis of $18,000. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. (Round your answers to the nearest whole number.)

a. Getaway redeems 11 of Bonnies shares for $3,500. Getaway has $21,000 of E&P at year-end and Bonnie is unrelated to Clyde.

Bonnie owns 60% before the redemption and _______% after the redemption.

Does this qualify as a sale or exchange? If so, how much is the gain?

b. Getaway redeems 30 of Bonnies shares for $7,000. Getaway has $21,000 of E&P at year-end and Bonnie is unrelated to Clyde.

Bonnie owns 60% before the redemption and _______% after the redemption. Does this qualify as a sale or exchange? If so, how much is the gain?

c. Getaway redeems 8 of Clydes shares for $4,000. Getaway has $21,000 of E&P at year-end and Clyde is unrelated to Bonnie.

Bonnie owns 40% before the redemption and _______% after the redemption.

Does this qualify as a sale or exchange? If so, how much is the gain?