Bailey is one of four equal unrelated shareholders of Checker Corporation. Bai

Bailey is one of four equal unrelated shareholders of Checker Corporation. Bailey has held Checker stock for four years and has a basis in her stock of
$40000. Checker has $280000 of current and accumulated E&P and distributies $100000 to Bailey.

a. What are the tax consequences to Checker and to Bailey if Bailey is an individual and the distribution is treated as a dividend?

b. In part a what would be the tax consequences if Bailey were a corporation?

c. What are the tax consquences to checker and to Bailey (an individual) if Bailey surrenders all her stock in a redemption qualifying for sale treatment?

d. In part c what would be the tax consequences if Bailey were a corporation?

e. Which treatment would Bailey prefer if Baily were an individual? Which treatment would Baily Corporation prefer?