X, which has been a calendar year S corporation since its initial formation, is owned equally by A, B and C. On December 31, 20X1, X has the following balance sheet:

Asset	AB	FMV	Shareholders	AB	FMV
Cash	200,000	200,000	A	200,000	200,000
Stock A	260,000	200,000	B	140,000	200,000
Stock B	80,000	200,000	C	200,000	200,000
Totals	540,000	600,000		540,000	600,000

Question #1: What is the effect on all shareholders if on December 31, 20X1, X redeems Bs interest by distributing Stock A to him?

Question#2: What is the effect on all shareholders if on December 31, 20X1, X redeems B's interest by distributing 1/2 of the Stock A and 1/2 of the stock of B to him?

Question #3: What is the effect on all shareholders if on December 31, 20X1, X liquidates and distributes cash of $200,000 to A, stock of A to B and Stock of B to C?

Please cite Code sections