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Determine the tax implications of these transactions for Shelley

Taxation

Determine the tax implications of these transactions for Shelley. Show calculation.
Shelley purchased 900 shares of common stock of Castro Corporation in 2015 for $30,000 (this number of shares was equivalent to 60% of the ownership of the corporation and was the corporation’s only class of stock outstanding). During 2018, the corporation distributed a 10% stock dividend (there was no option to take cash). During the current year, Castro Corporation redeemed 450 shares of Shelley’s stock for $17,000. Shelley was the only shareholder who had shares redeemed.

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