Sunny Hill Corporation has one class of voting common stock, of which 1,000 shares are issued and outstanding. The shares are owned as follows:

Aubrey Glen 400

Jerry Glen (Aubreys son) 200

Lou Ann Glen (Aubreys daughter) 200

Maggie Mae (unrelated) 200

Total shared 1,000

Sunny Hill Corporation has current E&P of $400,000 for this year and accumulated E&P at January 1 of this year of $60,000. During this year, the corporation made the following distributions to its shareholders:

03/31: Distributed $100/share to each shareholder ($100,000 in total).

06/30: Distributed $100/share to each shareholder ($100,000 in total).

09/30: Distributed $100/share to each shareholder ($100,000 in total).

12/31: Redeemed all of Maggies shares for $250,000 in cash

Sunny Hill Corporation contacted a highly skilled CPA firm, QRS, for their advice on the following issues:

1. What is the tax status of each distribution made this year?
2. What is the amount of accumulated E&P at the beginning of next year
3. Lastly, due to COVID-19, Aubrey is considering retirement and would like to have the corporation redeem all of his shares for $100,000 plus a 10-year note with a fair market value of $300,000. What must Aubrey do or consider if he wants to ensure that the redemption will be treated as an exchange? Could Aubrey still act as a consultant to the company?