Reno Inc.in the gambling industry undertakes a stock redemption What are the consequences of a redemption on the to the distributing corporation.

Select one:

a.The corporation recognizes a gain or loss as if it had sold the distributed property for its FMV immediately before the redemption.

b.If the redemption is treated as a dividend, E&P is reduced in the same manner as for a regular dividend.

c.If the redemption is treated as a sale, only accumulated earnings and profits is reduced.

d.All the above are correct.