Trey is in the \32 tax bracket. He acquired 4,000 shares of stock in Midlands Corporation ten years ago at a cost of \\( \\$ 80 \\) per share. In the current year, Trey received a payment of \\( \\$ 175,000 \\) from Midlands Corporation in exchange for 1,200 of his shares in Midlands. Midlands has \\( E \\& P \\) of \\( \\$ 160,000 \\). Trey has a capital loss carryover of \\( \\$ 50,000 \\) in the current tax year. Assume that Trey has no capital losses and taxpayers in the \32 tax bracket are subject to the long-term capital gains and qualified dividends tax rate of \15. What amount of the capital loss may Trey deduct in the current year in the following situations? a. The \\( \\$ 175,000 \\) payment from Midlands Corporation is a qualifying stock redemption for tax purposes. Trey may use \\( \\$ \\) of the capital loss carryover to offset the gain on the redemption. His income tax liability is Feedback Check My Work Noncorporate shareholders generally prefer to have a stock redemption treated as a sale or exchange rather than as a dividend distribution. b. The \\( \\$ 175,000 \\) payment from Midlands Corporation does not qualify as a stock redemption for tax purposes. Trey could deduct \\( \\$ \\) of the \\( \\$ 50,000 \\) capital loss carryover. His income tax liability is \\( \\$ \\) \\( \\mathbf{X} \\)