Question 49 El The gross estate of Raul, decedent, includes stock in Iris Corporation {E&P of $3 million} valued at $2.5 million. At the time of his death, Raul owned 60% of the Iris stock outstanding, and he had a basis of $420,000 in the stock. The death taxes and funeral and administration expenses related to Raul's estate amount to $1 million, and the adiusted gross estate is $7 million. The remainder of the Iris stack is owned by Monica, Raul's daughter and sole heir of his estate. :1 What are the tax consequences to Raul's estate if iris Corporation distributes $2.5 million to the estate in redemption of all of its stock in the corporation