Duroseau Corporation has two equal shareholders, Vanessa and Yanni. Duroseau Corporation has current E&P of $50,000 and a deficit in accumulated E&P of $40,000. On August 15, Duroseau Corporation distributes investment land to these shareholders. The land distributed to Vanessa has a FMV of $30,000 and a basis to the corporation of $24,000. The land distributed to Yanni has a FMV of $30,000 and a basis to the corporation of $26,000. Vanessa's basis for her stock is $2,000. Yanni's basis for her stock is $1,000. There are no other distributions this year. How much dividend income does Vanessa recognize? OA $20,000 OB $25,000 OC. $7,370 OD. $30,000 E. $28,950 QUESTION 2 Lucy, an individual owning 35% of the stock, received a liquidating distribution from Alpha Corporation (a C corporation). Lucy's basis is the Alpha stock was $10,000. In exchange for giving up all Alpha stock, Lucy received $5,000 cash and property (with an $8,000 basis to the corporation and a $14,000 FMV) that was subject to a $3,000 mortgage Lucy assumed. What is Lucy's recognized gain? OA $9,000 OB $6,000 OC. $11,000 OD. $5,000