Flatlands Corporation redeems 100 shares of its stock from Frank for $13,000 Frank's basis in the shares is $9,000. Explain possible alternative ta treatments of Frank's receiving the $13,000.

a) If the redemption is treated as a sale, Frank recognizes a $________ of (capital gain / capital loss / ordinary loss / dividends) and (no additional income tax liability is created as a result / the applicable capital gains tax rate would apply / the applicable corporate tax rates would apply / the applicable individual income tax bracket rate would apply).

b) If the redemption is not treated as a sale, Frank recognizes a $________ of (capital gain / capital loss / ordinary loss / dividends) and (no additional income tax liability is created as a result / the applicable capital gains tax rate would apply / the applicable corporate tax rates would apply / the applicable individual income tax bracket rate would apply).