Indigo Corporation wants to transfer cash of $203,400 or property worth $203,400 to one of its shareholders, Brianna, in a redemption transaction that will be treated as a qualifying stock redemption. If Indigo distributes property, the corporation will choose between two assets that are each worth $203,400 and are no longer needed in its business: Property A (basis of $101,700) and Property B (basis of $264,420).

a. Compute Indigo's recognized gain or loss if it distributes Property A in redemption of Brianna's shares.

The distribution of Property A would result in a realized gain/loss of $------ to Indigo, of which $-------- is recognized.

b. Compute Indigo's recognized gain or loss if it distributes Property B in redemption of Brianna's shares.

The distribution of Property B would result in a realized

gain/loss of $--------to Indigo, of which $-------- is recognized.

c. Compute Indigo's recognized gain or loss if it sells Property B to an unrelated party, then distributes the sale proceeds in redemption of Brianna's shares.

A sale of Property B to an unrelated party would result in a realized

(gain/loss) of $------ to Indigo, of which $----- is recognized.