6. Margarita had a basis of 60,000 in the stock in Andrea Corporation which she sold to Tony on July 31, 2020 for $85,000. Andrea Corporation had accumulated earnings and profits (E & P) of $45,000 on January 1, 2020 and current earnings and profits (E&P) for 2020 of $40,000. During the tax year of 2020, Andrea Corporation made the following distributions: $80,000 cash to margarita on July 1, 2020 and $80,000 Cash to Tony on December 30,2020. THE Gain to Margarita on the sale of stock to Tony is: A) $ 30,000 B) $ 35,000 C) $ 70,000 D)$ 40,000 7. Barbara, the sole shareholder, had a basis of $20,000 in the stock of Circle Corporation which she sold to Gwen on July 31, 2020 for $120,000. Circle Corporation had a positive accumulated earnings and profits (E&P) of $50,000 on January 1, 2020 and positive current earnings and profits (E&P) for 2020 of $40,000. During 2020, circle Corporation made the following distributions: $80,000 cash to Barbara on July 1, 2020 and $80,000 cash to Gwen on December 31, 2020. Barbara will have a taxable divided income for 2020 of A) $80,000 B) $0 C) $70,000 D) 20,000