Elizabeth acquired 5,000 shares of stock in River Corporation seven years ago for $20 a share. In the current year, River Corporation (E & P of $1.3 million) redeems all of Elizabeth's shares for $160,000. Elizabeth is in the 35% tax bracket. What are the income tax consequences to Elizabeth if:

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

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