Julio Gonzales is in the 32% tax bracket. He acquired 2,000 shares of stock in Gray Corporation seven years ago at a cost of $50 per share. In the current year, Julio received a payment of $150,000 from Gray Corporation in exchange for 1,000 of his shares in Gray. Gray has E & P of $1 million.

a) The stock redemption qualifies for sale or exchange treatment. What income tax liability would Julio incur on the $150,000 payment? Assume that Julio has no capital losses.

b) The stock redemption does not qualify for sale or exchange treatment. What income tax liability would Julio incur on the $150,000 payment? Assume that Julio has no capital losses.

c) The stock redemption qualifies for sale or exchange treatment. What income tax liability would Julio Corporation incur on the $150,000 payment? Assume that Julio Corporation has no capital losses.

d) The stock redemption does not qualify for sale or exchange treatment. What income tax liability would Julio Corporation incur on the $150,000 payment? Assume that Julio Corporation has no capital losses.