Please explain to me the answer.

11. Renee, I, the sole sharcholder of Indigo Corporation, sold her stock to Chad on July 1 for $180,000. Rene's stock basi at the beginning of the year was $120,000. Indigo made a $60,000 cash distribution to ke while Chad received a $120,000 cash distribution from Indigo had $26,000 in accumulated E & P, while current E &P (before distributions) was following statements is correct? ately before the sale, Indigo on November 1 . As of the beginning of the current year, $90,000. Which of the a. Renee recognizes a $60,000 gain on the sale of the stock. b. Renee recognizes a $64,000 gain on the sale of the stock. c. Chad recognizes dividend income of $120,000. d. Chad recognizes dividend income of $30,000. e. None of the above