Aggie Corporation made a distribution of $535,000 to Rusty Cedar in partial liquidation of the company on December 31 of this year. Rusty, an individual, owns 100 shares (100 percent) of Aggie Corporation. The distribution was in exchange for 50 percent of Rusty's stock in the company. At the time of the distribution, the shares had a fair market value of $137 per share. Rusty's tax basis in the shares was $32 per share. Aggie had total E&P of $8,020,000 at the time of the distribution. a. What are the amount and character (capital gain or dividend) of any income or gain recognized by Rusty as a result of the partial liquidation? per share

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