G and L each own 50 shares (100 total) of x Corp (100k ep)

40k redemption of 30 shares of G what is effecr on EP if

a. redemption is sale/exchange

b. redemption is a dividend

Gita and Louis each own 50 shares of the 100 outstanding shares of X Corp. X Corp has $100,000 of E&P. X Corp distributes $40,000 in redemption of 30 shares of Gita. What is the effect of the redemption on ESP i alternatively, (a) the redemption is a sale or exchange or (b) the redemption is a dividend SHOW AND EXPLAIN YOUR COMPUTATIONS