The answer is NOT $20,000 capital loss, $80,000 dividend, or $20,000 section 1231 loss.

0/2 points Question 20 A&W corporation is owned as follows (800 shares issues and outstanding) Mr. B Sr. Mr. C Sr. (B's brother) Mrs. B (B Sr.'s wife) Mr. B Jr. Mr. C. Jr. Mrs. C (C Sr.'s wife) Darrel (Mr. C Sr.'s grandson) TOTAL 25% 25% 10% 10% 15% 5% 10% 100% (200 shares) (200 shares) (80 shares) (80 shares) (120 shares) (40 shares) (80 shares) Determine the (1) amount and (2) character of a redemption on the shareholder if One-half of Darrel's stock is redeemed for $60,000 in cash. Darrel's basis is $80,000 in the redeemed stock. E&P in the corporation is $1,000,000 $60,000 dividend $20,000 capital loss $80,000 dividend $20,000 section 1231 loss none of the above