Questions 17-20 refer to the following information:

On 1/1/x0, X Co. had accumulated E&P totaling $20,000.

During 20x0, X Co. made the following distributions to its shareholders:

A - $30,000 cash on 3/1/x0 B - Property (FMV $70,000; Basis $60,000) on 10/1/x0

A's basis in his X Co. stock is $12,000. B's basis in his X Co. stock is $15,000.

Assume X Co. had current E&P from operations in 20x0 totaling $10,000.

1.

A should characterize the distribution as follows:

$26,000 dividend; $4,000 return of capital

$10,000 dividend; $12,000 return of capital; $8,000 capital gain

None of these.

$30,000 dividend

2.

B should characterize the distribution as follows:

$14,000 dividend; $15,000 return of capital; $41,000 capital gain

$20,000 return of capital; $35,000 capital gain

$70,000 dividend

None of these.

3.

X Co.'s gain or loss on the distribution is

Group of answer choices

$30,000

None of these.

0

$10,000

4.

If the property distributed was subject to a $20,000 mortgage under Code 311, X Co.'s gain or loss on the distribution is

Group of answer choices

$80,000

None of these.

0

$10,000

can you please tell me if my bolded answers are right and explain if they are and if they are not can you please help me answer them?

Thanks!