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C:4-44 Redemption from a Sole Shareholder. Paul owns all 100 shares of Presto Corporation stock. His basis in the stock is $10,000. Presto has $100,000

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C:4-44 Redemption from a Sole Shareholder. Paul owns all 100 shares of Presto Corporation stock. His basis in the stock is $10,000. Presto has $100,000 of E&P. Presto redeems 25 of Paul's shares for $30,000. What are the tax consequences of the redemption to Paul and to Presto

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