Indigo Corporation wants to transfer cash of $461,000 or property worth $461,000 to one of its shareholders, Linda, in a redemption transaction that will be treated as a qualifying stock redemption. If Indigo distributes property, the corporation will choose between two assets that are each worth $461,000 and are no longer needed in its business:
Property A (basis of $230,500) and Property B (basis of $599,300).
a) The distribution of Property A would result in a $ recognized gain to Indigo.
b) The distribution of Property B would result in a $ disallowed loss to Indigo.
c) A sale of Property B to an unrelated party would result in a $ recognized loss to Indigo.