Jeremy, Nodir and Fran, unrelated individuals, own 30/30/40 shares respectively, in Joseph Corporation. The corporation has 100 shares outstanding and E&P of $200,000. The corporation redeems 20 shares owned by Fran for $30,000. He paid $200 a share for the stock two years ago. Determine (1) Frans ownership percentage before redemption (2) his ownership percentage after redemption and (3) whether the redemption will receive a sale of exchange treatment.

40%, 32% and Yes

40%, 25% and Yes

32%, 25% and No

325, 40% and No