YiLing, the sole shareholder of Brown Corporation, sold her Brown stock to. Calvin on July 30 for $270,000. YiLing's basis in the stock was $200,000 at the beginning of the year. Brown had accumulated E \& P of $120,000 on January 1 and has current E \& P of $240,000. During the year, Brown made the following distributions: $450,000 cash to YiLing on July 1 and $150,000 cash to Calvin on December 30 . If an amount is zero, enter " 0 ". a. How will YiLing and Calvin be taxed on the distributions? YiLing will have the following: Dividend income: 5 Return of capital: $ x Capital gain: 4 Calvin will have the following: Dividend income: $ Return of capital: {x Capital gain: 9 b. How much gain will Yiling recognize on the sale of her stock to Calvin? YiLing recognizes a capital gain of 4 x on the sale of the stock