WLS Corporation has three shareholders: Brown (20%), Smith (10%), and Jones (70%). None of these individuals are related.

The corporation redeems enough of Jones' shares that he owns 60% of the corporation afterward. Jones receives $50,000 for those shares and jones' basis in those shares is $15,000.

SELECT ALL OF THE TRE STATEMENTS FROM THE LIST BELOW!!

Jones has $50,000 of dividend income.

Jones has a capital gain of $35,000.

WLS Corporation will transfer out E&P that is proportionate to the percentage of shares redeemed.

WLS Corporation will transfer out $50,000 of E&P on the distribution.