9) Toyland Corporation, an S corporation, uses the calendar year as its tax year. Bob, Alice, and Carter own 60, 30, and 10 shares, respectively, of the Toyland stock. Carters basis for his stock is $26,000 on January 1 of the current year (assume a non-leap year). On June 30, Alice gifted one-half of her stock to Mike. On November 30, Carter sold his stock to Mike for $45,000. Toy-land reports the following results for the current year:

Ordinary income $120,000 Long-term capital loss $10,000 Charitable contributions $6,000

a. What amount of income, loss, or deduction do the four shareholders report (assuming the cor-poration makes no special allocation election)?

b. What gain or loss does Carter recognize when he sells the Toyland stock?

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