Tara is in the HIGHEST regular tax bracket (assume that it is 37%). She acquired 500 shares of stock in Swan Corporation seven years ago for $100 a share. In the current year, Swan Corporation (E & P of $1.2 million) redeems all of her shares for $160,000. What are the income tax consequences (cost) to Tara if:

a.	The redemption qualifies for sale or exchange treatment, and Tanya has no other transactions in the current year involving capital assets?
b.	The redemption does not qualify for sale or exchange treatment?