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El Toro Corporation declared a common stock distribution to all shareholders of record on June 30,203. Shareholders will receive one share of El Toro stock for each two shares of stock they already own. Raoul owns 450 shares of EI Toro stock, with a tax basis of $96 per share. The fair market value of the EI Toro stock was $136 per share on June 30,203. What are the tax consequences of the stock distribution to Raoul? Multiple Choice $0 dividend income and a tax basis in the new stock of $64 per share. $30,600 dividend and a tax basis in the new stock of $136 per share. $0 dividend income and a tax basis in the new stock of $96 per share. $0 dividend income and a tax basis in the new stock of $136 per share. Comet Company is owned equally by Pat and his sister Pam, each of whom holds 120 shares in the company. Pam wants to reduce her ownership in the company, and it was decided that the company will redeem 60 of her shares for $1,200 per share on December 31,203. Pam's adjusted tax basis in each share is $600. Comet has total E\&P of $260,000. What are the tax consequences to Pam because of the stock redemption? Multiple Choice $36,000 capital gain and a tax basis in each of her remaining shares of $120. $72,000 dividend and a tax basis in each of her remaining shares of $60. $72,000 dividend and a tax basis in each of her remaining shares of $120. $36,000 capital gain and a tax basis in each of her remaining shares of $600