Indigo Corporation wants to transfer cash of $491,800 or property worth $491,800 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 $491,800 and are no longer needed in its business: Property A (basis of $245,900) and Property B (basis of $639,340).

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

gainloss of $________________to Indigo, of which $____________ recognized.

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b. Compute Indigo's recognized gain or loss if it distributes Property B to redeem Brianna's shares.

The distribution of Property B would result in a realized

gain loss of $__________to Indigo, of which $__________ recognized.

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

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

_______________ to Indigo, of which $____________ is recognized.