QUESTION 9 2 Abby, Billy, and Christy (unrelated to each other) own the following shares of stock of Redacre Inc., Abby - 200 shares, Billy - 200 shares, and Christy - 160 shares. On February 2, 2021, Redacre Inc. redeems 60 shares of Christy's stock for $50,000 cash and land with a FMV $290,000 (basis of $130,000). In addition, the land is encumbered by an $80,000 mortgage, which Christy assumes. Christy acquired her 160 shares ten years ago by purchase, and her basis in all of her 160 shares is $80,000. Redacre Inc. has no accumulated E&P and current E&P of $250,000, before considering the effects of this distribution. > a. What is the gain/loss, if any, Christy recognizes as a result of this distribution of property? b. What basis does Christy have in her shares of Redacre Inc. stock after this redemption? c. What basis does Christy have in the land she receives? d. What gain/loss does Redacre Inc. recognize as a result of this transaction? e. What is the effect on Redacre Inc.'s E&P