58. Sell Corporation has 400 shares of its only class of stock outstanding. Mr. Church owns 60 shares, his wife owns 80 shares, his son owns 200 shares, and his sons daughter owns 60 shares. Under the constructive ownership rules for stock redemptions, how many shares of Sell Corporations stock is the sons daughter considered to own?

a. 60

b. 200

c. 260

d. 400

e. None of the above

60. In 2018, a corporation distributed property with an adjusted basis of $100,000 and a fair market value of $140,000 to its shareholders. Its earnings and profits for 2018 were $170,000, and accumulated earnings and profits on January 1, 2018, were $370,000. What is the amount of gain recognized by the corporation on the distribution?

a. $0

b. $40,000

c. $70,000

d. $140,000

e. None of the above