what is the answer to this?

Tara is in the 37% - yes the "HIGHEST" -tax bracket. She acquired 1000 shares of stock in Swan Corporation seven years ago for $100 a share. In the current year, Swan Corporation (which has E \& P of $200,000 ) REDEEMS - buys back - all of her 1000 shares at $160,000 per share, which is a total of $160,000 Do you think that the redemption here will be viewed as a qualified redemption that will be treated as a sale by Tara of the stock? Or will it be viewed as a dividend? Why (or why not)? What are the income tax consequences, in general, to Tara, if a. The redemption does qualify for sale or exchange treatment, and Tara has no other transactions in the current year involving capital assets? (how much gets taxed, and at what tax rate?) b. The redemption does NOT qualify for sale or exchange treatment? (how much gets taxed, and at what rate?)