Natalia acquired 2,000 shares of stock in Lake Corporation seven years ago for $50 a share. In the current year, Lake Corporation (E & P of $1.4 million) redeems all of Natalia's shares for $160,000. Natalia is in the 24% tax bracket. What are the income tax consequences to Natalia if:

A. The redemption qualifies for sale or exchange treatment and Natalia has no other transactions in the current year involving capital assets?

B. The redemption does not qualify for sale or exchange treatment?