Indigo Corporation wants to transfer cash of $321,000 or property worth $321,000 to one of its shareholders, Linda, 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 $321,000 and are no longer needed in its business: Property A (basis of $160,500) and Property B (basis of $417,300).

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

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

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

The distribution of Property B would result in a realized 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 Linda's shares.

A sale of Property B to an unrelated party would result in a realized loss of ________$ to Indigo, of which ________$ is recognized.