urgent

Lawarna and June, own alf of the stock in Ciona Corporation. Each has a basis of 520,000 in their twenty (20) shares of stock. Gloria Corporation has Accumulated Eaminge And Profts (ESP) of 51,000,000. Liwanna wishes to retire in the current year and wants to sell her stock for 3500,000 , its Fair Market Value. June would fike to purchase Lawanna's shares and, thus, becorme the sole shareholder of Gioria Corporation. Because June is short of Cash, Gloris Corporation redetims all of Lawannirs. shares for 5500,000 . As a result of this transaction, which of the following is cortect? Gioria Corporation will not reduce Eamings And Profis (ESP) as a result of this transaction. Lawanna will have a Recogrized Gain of 5500,000. June wit have a Taxable Diveend of $900.000. June wis have no income from the transaction