14. Dave is the sole shareholder of Indigo Corporation. The basis of his stock is $130,000. Indigo distributes $210,000 to Dave in 20X8. Earnings and profits for Indigo are $70,000. How much income will Dave report in 20x8 and what will be its character? a $ 70,000 dividend/$130,000 capital gain. b. $130,000 dividend/$ 10,000 capital gain, C. $ 70,000 dividend/$ 140,000 capital gain. d. $ 70,000 dividend/$ 10,000 capital gain e. None of the answers provided is correct 15. Mary purchased an annuity contract for $90,720 on February 28, 20x7. She is to receive $800 per month starting August 1, 20X7, and continuing for life. She has a life expectancy of 27 years. What is the amount of Mary's annuity income that must be included in her gross income for 20x7? a $3,360 7:18 PM 2/24/2021