QUESTION 13 Donna Corporation had $2,000,000 in Eamings and Profits (EAP) when a distributes property with a basis of $200,000 and a Fair Markat Value of $600,000 to Jeanette one (1) of its four (4) unrelated shareholders, in exchange for all of her stock in Donna Corporation. Jeanette owns one-fourth (14) of the stock of Denna Corporation with a basis in her stock of $60,000 and the distribution qualifies as a Stock Redemption. Which of the following is correct? O Jeanette would have a basis of $60,000 in the property distributed O Jeanette would Recognize a Gain of $140,000 as a result of the distribution. O Jeanette would Recognize a Gain of $540,000 as a result of the distribution Donna Corporation would Recognize no Gain as a result of the distribution. QUESTION 14 Pursuant to a complete liquidation, Shirley Corporation distributes to its shareholders Land with a basis of $350,000 and Fair Market Value of $1,000,000. The Land is subject to a liability of $1,200,000. As a result of the distribution, which of the following is correct? O Shirley Corporation has a Recognized Gain of $850,000. O Shirley Corporation has a Recognized Gain of $650,000. O Shirley Corporation has no Recognized Gain. Shirley Corporation has a Recognized Gain of $200,000. UESTION 15 3 poin