Turkey Corporation (E & P of $1,600,000 million) has 3,000 shares of common stock outstanding owned by unrelated parties as follows: Cathi, 1,300 shares, and Donny, 1,700 shares. Cathi and Donny each paid $125 per share for the Turkey Corporation stock 14 years ago. In June of the current year, Turkey Corporation distributes land held as an investment (basis of $200,000, fair market value of $380,000) to Cathi in redemption of 525 of her shares. Answer each of the following questions. Explain and show calculations.

1. Is this a qualified or a nonqualified redemption?
2. What amount of gain or loss does Cathi recognize on the redemption?
3. What is Cathis basis in the land?
4. By how much will Turkey Corporation reduce its E&P due to the distribution of the land? Hint: Remember to apply the limit if needed.