For Question $28,$ heres what we know:Jack and Jill each own $20$ shares of Hill Corporation and are individuals.Each has a basis of $$20,000$ in their stock.Hill Corporation has $$1,000,000$ in E&P$.$Jack wants to sell his stock to Jill for its FMV of $$500,000.$Jill does not have the cash, so Hill Corporation distributes $$500,000$ to Jill, and Jill pays $$500,000$ to Jack.This is a constructive dividend situation. Since Hill Corporation made a distribution to Jill $($the purchasing shareholder$)$ to enable her to buy stock from Jack, and Hill had sufficient E&P$,$ this distribution is treated as a dividend to Jill.Even though Jack receives the $$500,000,$ its not a corporate distributionits from Jill, so he has no income from the transaction under tax law $($he simply sold his shares to another individual$).$Final Answer:Jill has Dividend Income of $$500,000.$