LO.1, 2, 4 Dove Corporation (E & P of $650,000) has 1,000 shares of stock outstanding.

The shares are owned as follows: Julia, 600 shares; Maxine (Julia’s daughter), 300 shares; and Janine (Julia’s granddaughter), 100 shares. Dove Corporation owns land (basis of $470,000, fair market value of $330,000) that it purchased as an investment seven years ago. Dove distributes the land to Julia in exchange for all of her shares in the corporation.

Julia had a basis of $350,000 in the shares. What are the tax consequences for both Dove Corporation and Julia if the distribution is:

a. A qualifying stock redemption?

b. A liquidating distribution?