Liam, a shareholder in Lager, Inc., (a C corporation), would like to sell 800 of his shares of stock in Lager. Since Lager is not traded on an exchange, the only way to sell is the stock is by having Lager redeem the stock. The fair market value of the 800 shares of stock is $200,000. Liam purchased the stock 10 years ago for $95/share. Lager has E&P of $700,000. The corporate stock in Lager is held as follows: Liam 2,000 shares Jennifer (Liam's sister) 2,000 shares Katherine (Liam's mother) 2,000 shares Beer Partnerships (Liam has a 30% interest) 4,000 shares a. 10,000 shares Will this redemption of 800 shares of Liam's stock be treated as a qualified stock redemption or will it be treated as a distribution? Support your answer with calculations. b. How much tax must Liam pay if this transaction is treated as a qualified stock redemption? Liam is an individual in the 37% tax bracket. c. How much tax must Liam pay if this transaction is treated as a distribution (i.e. this transaction is NOT a qualified stock redemption)? (Liam does not have any additional capital transactions). d. Since Liam is still in the planning stage, what are your recommendations?