Sally purchased $380$ shares of Food Testing Corporation $($FTC$)$ many years ago for $$83,600.$ The only other owner of FTC is Hazel. Hazel is unrelated to Sally and owns $320$ shares with a total basis of $$80,000.$ The Fair market value of FTC stock is now $$740$ per share. FTC has $$250,000$ of accumulated earnings and profits.

THERE ARE $2$ PARTS TO THIS PROBLEM, A & B$.$ You should have $4$ total answers. SHOW YOUR WORK

A$.$ Assume FTC redeems $15\%$ of both Sally and Hazel$$s shares for $$720$ per share.

What amount and character of income must Sally recognize?

$2.$ What is Sally$$s total and per share basis in her remaining shares after the redemption?

B$.$ Instead of $($a$),$ assume FTC redeems $200$ of Hazel$$s shares for $$750$ per share and none of Sally's shares.

What amount and character of income must Hazel recognize?

$2.$ What is Hazel$$s total and per share basis in her remaining shares?