QUESTION 11 Charlotte Corporation had $2,000,000 in Eamings And Profits (EAP) when its distributes property (not Complete Liquidation) with an Adjusted Basis of 5000.000 and Fair Market Value of $200,000 to Amelia, one (1) of its four (4) shareholders Amelia owns one fourth (14) of the stock of Charlotte Corporation with a basis in her stock of $60,000 and the distribution qualifies as a Redemption. Which of the following is correct as a result of the distribution? O Amelia would recognize a Gain of $540,000 as a result of the distribution. O Charlotte Corporation would recognize a Loss as a result of the distribution Amelia would recognize a Gain of $140,000 as a result of the distribution O Amelia would have a basis of $60,000 in the property distributed. QUESTION 12 Ayanna Corporation is owned eighty percent (80%) by Kendra and twenty percent (20%) by Barbara who are unrelated to each other. Pursuant to a Complete Liquidation, Ayanna Corporation distributed Land that had a Fair Market Value on the date of distribution of $100,000 and a basis to Ayanna Corporation of $200,000. The Land was acquired by Ayanna Corporation in a Section 351 transfer two (2) years ago from Barbara when its Fair Market Value was $150,000 (Assume that there was no business purpose for the transfer). What is the Recognized Loss for Ayarina Corporation if the Land is sold to an unrelated third party for $100,000 (instead of distributed to either shareholder) and the $100,000 proceeds of the sale are distributed proportionately (pro-rata) to Kendra and Barbara (ie. eighty percent (80%) to Kendra and twenty (20%) to Barbara)? $20,000. O $10,000. $50,000. $ -0- 3p