QUESTION 20 Charla received Preferred Stock as a Nontaxable Common Stock Dividend in 2021 from Marisa Corporation. The value of the Preferred Stock when received by Charla was $20,000 and the value of the Common Stock was $30,000. Charla acquired the Common Stock in 2019 for $60,000 and Marisa Corporations Earnings And Profits (E&P) was $100,000 on the date of distribution of the Preferred Stock Six (6) months after the receipt of the Preferred Stock, Charla sold all of her stock (Common Stock and Preferred Stock) to an unrelated third party for $80,000. The Long-Term Capital Gain for Charla as a result of the sale of the all of the stock (Common Stock and Preferred Stock) is: O $14,000. O $40,000 $30,000 $20,000. QUESTION 21 The Adjusted Gross Estate of Madelyn, a deceased person, is $3,000,000. Madelyn's estate will incur Death Taxes and Funeral And Administrative Expenses of $500,000. Madelyn's Gross Estate includes 80% of the stock of Riggins Corporation. Madelyn purchased the stock eight (8) years ago for $300,000 and the value of the stock on the date of Madelyn's death was $1,500,000. The executor of Madelyn's estate redeemed $1,000,000 of the stock in Riggins Corporation. As a result of this redemption, Madelyn's estate has a Taxable Dividend of: (Assume that Madelyn's estate does not qualify for any Stock Redemption under Section 302(b)) O $1,000,000. $ -0- $ 400,000. $ 500,000.