10 The outstanding stock of Foley Corporation is owned as follows: Anthony Elletisse (Anthony's daughter) John (Anthony's cousin) Qi Corporation. Total shares outstanding 100 shares 100 shares 100 shares 100 shares 400 shares Anthony owns 50% of Qi Corporation stock. The rest of Qi Corporation stock is owned by other unrelated parties. Foley Corporation has $300,000 in E&P. Foley Corporation redeems 90 of Anthony's shares of stock for a piece of land. This land has a fair market value of $9,000 and a basis to the corporation of $6,000. Anthony's basis for his Foley stock is $10 per share (100 shares @ $10 $1,000). How much income or gain does Anthony recognize as a result of this redemption transaction? (do not include a $ or comma in your answer) Question 11 John owned 40% of ABC Corporation's only class of stock outstanding. The remaining 60% of ABC stock was owned by Lucy (not related to John). ABC Corporation redeemed all of John's stock for $75,000 and also redeemed one-half of Lucy's stock for $50,000. John's basis in his stock of ABC Corporation was $30,000 and Lucy's basis in her ABC stock was $25,000. ABC's E&P was $200,000. What is the amount and character of John's and Lucy's recognized gains? Question 12 Gamma Corporation has E&P of $7,000 and 1,000 shares of stock outstanding before the following transaction. Gamma redeems 120 shares of X stock in a transaction that qualifies for sale treatment as a redemption. In exchange for the stock, the corporation transfers to the shareholder land with a FMV of $10,200 and a basis to the corporation of $4,000. What is the corporation's ending E&P after this redemption transaction