Robert Smith Owns 20% of the Shares of Quarks Inc

Robert Smith owns 20% of the shares of Quarks Inc.,a Canadian qualified small business corporation.He purchased the shares from a previous shareholder for $50,000.The stated paid up capital of the shares is $10,000.Two other shareholders own equal portions of the remaining shares of Quarks.
Robert has decided to sell his shares,which have a market value of $120,000.The shares are to be sold either to the two other shareholders,or back to the corporate treasury.All three shareholders used all of their capital gains deductions earlier in the year.
Robert has employment income of $185,000,capital gains in the amount of $50,000,and property income of $20,000 for the current year.
All three shareholders are in a 45% tax bracket.The marginal rate on dividends is 33%.The corporate tax rate for Quarks is 15%.
Required:
A)Determine the total tax consequences for Robert is he sells his shares to:
1)the other shareholders,and
2)the corporate treasury.
B)Determine the cost of the share purchase for:
1)the other shareholders,assuming that the purchase will be made using dividend income paid to the two shareholders from the corporation,and
2)the corporation,assuming that the purchase will be made from business profits.
C)Which option is preferential for 1)Robert and 2)the other shareholders?