Sunset Corporation, with E & P of $400,000, makes a cash distribution of $120,000 to a shareholder. The shareholders basis in the Sunset stock is $50,000.

a. Determine the tax consequences to the shareholder if the distribution is a nonqualified stock redemption. The shareholder has dividend income of $_____________.

b. Determine the tax consequences to the shareholder if the distribution is a qualifying stock redemption. The shareholder has a capital gain of $______________.

c. Determine the tax consequences to the shareholder if the distribution is pursuant to a complete liquidation of Sunset. The shareholder has a capital gain of $_______________.