QUESTION 6 Donna Corporation had $2,000,000 in Earnings and Profits (E&P) when It distributes property with a basis of $200,000 and a Fair Market Value of 5600,000 to Jeanette, one (1) of its four (4) unrelated shareholders. In exchange for all of her stock in Donna Corporation. Jeanette owns one-fourth (1/4) of the stock of Donna Corporation with a basis in her stock of 560.000 and the distribution qualifies as a Stock Redemption. Which of the following is correct? Jeanette would Recognize a Gain of 5140.000 as a result of the distribution Jeanette would recognize a Gain of $540,000 as a result of the distribution Jeanette would have a basis of $60,000 in the property distributed Donna Corporation would Recognize no Gain as a result of the distribution