Bryant is in the 32% tax bracket. She acquired 1,000 shares of stock in ACO Corporation seven years ago for $100 a share. In the current year, ACO Corporation (E & P of $1,200,000) redeems all of Bryants shares for $160,000. What are the income tax consequences to Bryant if:

a. The redemption qualifies for sale or exchange treatment and Bryants has no other transactions in the current year involving capital assets?

b. The redemption does not qualify for sale or exchange treatment?