Ally, David, Crystal, the ADC Partnership, Cherry Corporation, and the Tusk Family Trust own shares of Watson Corporation's single class of stock as follows: (Click the icon to view the stock information.) (Click the icon to view additional information.) Read the requirements. Requirement a. Determine the tax consequences to Ally and Watson: Watson redeems 110 shares of its stock from Ally in exchange for $75,000. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. If a box is not used in the table, leave the box empty; do not select an item from the dropdown list and do not enter a zero. Assume the redemption is not a complete termination or partial liquidation and it is not a meaningful reduction under Sec. 302(b)(1).) Amount of income, gain, or loss Ally Character of income, gain, or loss Watson Corporation Increase/ decrease Amount of change Ally's basis in her remaining shares is Requirement b. Determine the tax consequences to Ally and Watson: Watson redeems 240 shares of its stock from Ally in exchange for $130,000. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. If a box is not used in the table, leave the box empty; do not select an item from the dropdown list and do not enter a zero.) Ally Amount of income, Character of income, gain, or loss gain, or loss Watson Corporation Increase / decrease Amount of change Ally, David, Crystal, the ADC Partnership, Cherry Corporation, and the Tusk Family Trust own shares of Watson Corporation's s (Click the icon to view the stock information.) (Click the icon to view additional information.) Requirements Read the requirements. Amount of income, gain, or loss Determine the tax consequences of the following two independent transactions to Ally and Watson Corporation. Ally Watson Corporation a. Watson redeems 110 shares of its stock from Ally in exchange for $75,000. b. Watson redeems 240 shares of its stock from Ally in exchange for $130,000. Character of income, gain, or loss Increase/ decrease Amount of change Print Done - X Ally's basis in her remaining shares is Requirement b. Determine the tax consequences to Ally and Watson: Watson redeems 240 shares of its stock from Ally in exchange for $130,000. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. If a box is not used in the table, leave the box empty; do not select an item from the dropdown list and do not enter a zero.) Ally Amount of income, Character of income, gain, or loss gain, or loss Ally's basis in her remaining shares is Watson Corporation Increase / Amount of decrease change