Teal Corporation, with E \& P of $2,000,000, 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. a. If the distribution is a nonqualified stock redemption, Teal Corporation would have a property distribution. Grace would have dividend income of $ Feedback Check My Work b. If Grace is a corporation and the distribution is a nonqualified stock redemption, then it would have dividend , and $ is subject to tax because of the - Teal Corporation would have a of $