Red Corporation is owned entirely by Alex and Betty (who are unrelated unless otherwise stated). Alex owns 60 shares of Red Corporation's common stock (bought in one transaction for $600). Betty owns 40 shares of Red Corporation's common stock (with an adjusted basis of $30 per share). The stock's FMV is $20 per share. Red Corporation's E&P is $500.Red Corporation uses the accrual method of accounting. What are the results to the parties from the alternative transactions in each of the following situations? Provide the amount and character of shareholder income or loss and the impact on Red Corporation's E&P.

f.Alex sells 30 shares back to Red for $600. Shortly thereafter, Betty sells 10 shares back to Red for $200 in an exchange that had been agreed to in the preceding year. What would result to Betty? What would result to Alex if Betty sold 11 shares, rather than 10?