3. How is the September 1 distribution taxed to Heath, Jetta, Petra, and Ashley? Please use the table below. September 1 Distribution Percent Dividend Ownership (from Dividend (from Reduction in Capital Gain Basis Heath Jetta Ashley Petra current E&P) accumulated E&P) 4. How is the October 1" distribution taxed to Heath (please indicate amount of taxable income and how it is taxed)? Please use the table below. Also, why doesn't I.R.C. 5 302(b)(1) or 5 302(b)(2) apply to her redemption? October 1 Distribution Dividend (from current E&P) Dividend (from Reduction in Basis Capital Gain accumulated E&P) Heath 5. What is Petra's gain realized and gain recognized upon the contribution of the automobile in exchange for 10 shares of Lux Corp.? Does non-recognition treatment under L.R.C. 5 351 apply? Does Lux Corp. realize or recognize any gain upon the issuance of 10 shares to Petra? What is the relevant Code section which sets forth the rule? 6. What is Lux's Corp gain (or loss) realized and gain (or loss) recognized upon (1) the sale of the automobile; and (ii) the distribution of the condo? 7. How is the November 1" distribution taxed to Jetta? Please use the table below. Also, why doesn't LR.C. 5 302(b)(1) or 5 302(b)(2) apply to her redemption? November 1 Distribution Dividend (from current E&P) Dividend (from Reduction in Basis Capital Gain accumulated E&P) Jetta 8. Is the 2016 merger between Prowess Corp. and Lux Corp. a "tax-free" reorganization under LR.C. 5368? Why/Why not