Julio Inc. is a shareholder of Gray Corporation and is subject to a 21% tax rate. It acquired 2,000 shares of stock in Gray Corporation seven years ago at a cost of $50 per share. In the current year, Julio, Inc. received a payment of $150,000 from Gray Corporation in exchange for 1,000 of its shares in Gray. Gray has E & P of $1,000,000. Assume that Julio Inc. has no capital losses. If the stock ownership in Gray Corporation represented a 25% interest, what income tax liability would Julio incur on the $150,000 payment in each of the following situations? Click here to access the Dividends Received Deduction Exhibit. a. If the payment qualifies for stock redemption sale or exchange treatment, the tax liability for a corporate shareholder would be 21,000. Feedback b. If the payment does not qualify for stock redemption sale or exchange treatment, the tax liability for a corporate shareholder would be 6,300 X Deerwood Corporation lends its principal shareholder, Lafayette, $500,000 on July 1 of the current year. The loan is interest-free and payable on demand. On December 31, the imputed interest rules are applied. Assume that the Federal rate is 3%, compounded semiannually. What are the tax consequences of this loan? Lafayette has dividend income of 7,500 and Deerwood has interest income of $ 0 X