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Sunset Corporation, with E & P of $400,000, makes a cash distribution of $120,000 to a shareholder

Accounting

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Sunset Corporation, with E & P of $400,000, makes a cash distribution of $120,000 to a shareholder. The shareholder’s basis in the Sunset stock is $50,000.

a.  Determine the tax consequences to the shareholder if the distribution is a nonqualified stock redemption

b.  Determine the tax consequences to the shareholder if the distribution is a qualifying stock redemption.

c.  Determine the tax consequences to the shareholder if the distribution is pursuant to a complete liquidation of Sunset.

Please show calculations for each answer and explain. Thank you. I need all three of these answered.