QUESTION 11 Charlotte Corporation had $2,000,000 in Earnings And Profits (E&P) when its distributes property (not Complete Liquidation) with an Adjusted Basis of $600,000 and a Fair Market Value of $200,000 to Amelia, one (1) of its four (4) shareholders. Amelia owns one-fourth (1/4) 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? Amelia would recognize Gain of $540,000 as a result of the distribution. 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. Amelia would have a basis of $60,000 in the property distributed.