During the current year, Gnatcatcher, Inc., (E & P of $1,000,000) distributed $200,000 each to Brandi and Yuen in redemption of some of their Gnatcatcher stock. The two shareholders acquired their shares five years ago. Each shareholder is in the 32% tax bracket, and each had a $45,000 basis in her redeemed stock.

A. Assume that the distribution to Brandi is a qualifying stock redemption. Determine Brandis tax liability on the distribution.

B. Assume that the distribution to Yuen is a nonqualified stock redemption. Determine Yuens tax liability on the distribution.