Julio is in the 33% 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 $1,000,000. Julio has a capital loss carryover of $50,000 in the current tax year. Julio has no other capital gain transactions during the year. What amount of the capital loss may Julio deduct in the current year in the following situations?

a. The $150,000 payment from Gray Corporation is a qualifying stock redemption for tax purposes. Julio may use $ _________________ of the capital loss carryover to offset the gain on the redemption.

b. The $150,000 payment from Gray Corporation does not qualify as a stock redemption for tax purposes. Julio could deduct $ _________________ of the $50,000 capital loss carryover.

c. If Julio had the flexibility to structure the transaction as described, which form would he choose to receive the greatest tax benefit? _________________