Exercise $6-29($Algorithmic$)($LO$.2)$

Indigo Corporation wants to transfer cash of $$479,200$ or property worth $$479,200$ to one of its shareholders, Brianna, 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 $$479,200$ and are no longer needed in its business: Property $A($basis of $$239,600)$ and Property B $($basis of $$622,960).$

a$.$ Compute Indigo's recognized gain or loss if it distributes Property A in redemption of Brianna's shares.

The distribution of Property A would result in a realized $$ of $ $$ to Indigo, of which $

$$ is recognized.

b$.$ Compute Indigo's recognized gain or loss if it distributes Property B in redemption of Brianna's shares.

The distribution of Property B would result in a realized $$ of $ $$ to Indigo, of which $

$$ is recognized.

c$.$ Compute Indigo's recognized gain or loss if it sells Property B to an unrelated party, then distributes the sale proceeds in redemption of Brianna's shares.

A sale of Property B to an unrelated party would result in a realized $$ of $ $$ to Indigo, of which s $$ is recognized.