Mark owns $60\%$ of ABC Corporation$$s stock. Jill, an unrelated shareholder, owns $40\%$ of the stock. ABC Corporation redeems $30\%$ of Mark$$s stock. After the redemption, what is the tax treatment of the redemption for Mark, and does it qualify as a sale or exchange under $302($b$)(2)($Substantially Disproportionate Redemption of Stock$)?$

Question $18$ options:

The redemption is taxed as a dividend because the transaction does not meet the $50\%$ or $80\%$ ownership tests.

The redemption is taxed as a sale or exchange because Mark's ownership is reduced to below $50\%$ and his ownership after the redemption is less than $80\%$ of his original ownership.

The redemption is taxed as a dividend because Mark's ownership after redemption is still above $50\%.$

The redemption is taxed as a sale or exchange because Mark's ownership percentage after redemption is less than $80\%$ of his original ownership