8. Jack and Jill, individuals, own all of the outstanding stock of Hill corporation. Each has a basis of $20,000 in their twenty (20) shares of stock. Hill corporation has accumulated earnings and profits (E&P) of $1,000,000. Jack wishes to retire in the current year and wants to sell his stock for its Fair Market value of $500,000. Jill would like to purchase Jack's shares and, thus, become the sole shareholder of Hill corporation but does not have any available cash. To this effect, Hill corporation distributes $500,000 to Jill who in turns pays the $500,000 to jack for all of his stock. As a result, which of the following is correct? A) Jack has dividend income of $500,000 B) Jill has dividend income of $500,000 C) Jill has no income as a result of the transactions D) Jill has a long-term Capital Gain of $480,000 9.Nubia corporation, when it had earnings and profit of $2,000,000 distributes property with an adjusted basis of $600,000 and a Fair Market value of $200,000 to Flora, an individual and one (1) of its four (4) shareholders. Flora has a one-fourth (1/4) stock ownership in Nubia corporation and has a basis in the stock redeemed of $60,000. Assuming that the distribution qualifies as a stock redemption under section 302 (b)(2), which of the following is correct? A) Flora would have a recognized Gain of $540,000 for the distribution B) Flora would have ra recognized Gain of $140,000 for the distribution C) Flora would have a basis of $60,000 in the property distributed D) Nubia Corporation would recognize a loss of $400,000