Required information Problem 18.67 (LO 18-5) (Algo) (The following information applies to the questions displayed below] Nail Corporation mode a distribution of $555.440 to Rusty in partial l quidation of the company on December 31 of this year. Rusty, on individual, owns 100 percent of Nail Corporotion. The distribution was in exchange for 50 percent of Rusty's stock in the compony. At the time of the distribution, the shores had a falr merket value of 5212 . per share. Rusty's tox basis in the shores was $50 per shore. Nail had total E\&P of $8.395.000 at the time of the distribution. Problem 18-67.Part a (Algo) a. Whot are the amount and character (copital gain or dividend) of any income or gain recognized by Rusty becsuse of the partial liquidation? Required informetion Problem 18-67 (LO 18-5) (Algo) The following information opplies to the questions disployed below. Nail Corporation macie a clistribution of 5555.440 to Rusty in partial liquidiotion of the compony on December 31 of this year. Rusty. en indrvidual, owns 100 percent of Nail Corporation. The distribution was in exehange for 50 . percent of Rusty's stock in the company. At the time of the distribution. the shores had of foir matket value of 5212 per share, Rusty's tox basis in the shores was $50 per shore. Nail had total E\&P of $8.395.000 at the time of the distribution. Problem 18-67. Part b (Algo) b. Assuming Nail mede no other distributions to Rusty during the year, by what amount does Nail reduce its total Esp becouse of the partial liquidation