19-41 (LO. 1, 3) YiLing, the sole shareholder of Brown Corporation, sold her Brown stock to Calvin on July 30 for $270,000. YiLing's basis in the stock was $200,000 at the beginning of the year. Brown had accumulated E & P of $120,000 on January 1 and has current E & P of $240,000. During the year, Brown made the following distributions: $450,000 cash to YiLing on July 1 and $150,000 cash to Calvin on December 30. If an amount is zero, enter "0". a. How will YiLing and Calvin be taxed on the distributions? YiLing will have the following: Dividend income: $ Return of capital: $ x Capital gain: Calvin will have the following: Dividend income: $ X Correct Return of capital: Capital gain: b. How much gain will YiLing recognize on the sale of her stock to Calvin? YiLing recognizes a capital gain of $ X on the sale of the stock