Brunette Corporation is owned equally by two individuals --Charlie and Andrew. Brunette Corporation has two operating divisions, Nail and Hair, that have been conducting business for more than five years. Charlie and Andrew can no longer agree on the management of Brunette Corporation's activities and decide to separate. Andrew agrees to a plan whereby the assets of the Nail division worth $896846 (adjusted basis of $385385) and liabilities of $103569 will be transferred to newly formed Claws Corporation in exchange for all of Claws' stock. The Claws stock (having a value of $679801) will then be distributed to Andrew in exchange for all of his Brunette Corporation stock having a basis of $ 247777. What would be the amount and character of Andrew's recognized gain on the receipt of the Claws stock? Question 18Answer a. $511461 capital gain b. $432024 ordinary income c. $407892 capital gain d. $0 e. $432024 capital gain