Teal Corporation, with E & P of $2 million, distributes property with a basis of $150,000 and a fair market value of $400,000 to Grace. She owns 15% of the outstanding Teal shares.

1)What is the gain recognized by Teal Corporation when it distributes appreciated property?

2) What is the dividend income reported by Grace, an individual?

3) What is the dividend income reported by Grace, a corporation ?

4) Grace has a basis of $90,000 in the shares redeemed. what is the long-term capital gain recognized by Grace?