Individuals A$,$ B$,$ C$,$ and D each own $25\%$ of X Corp. A and B are father and son, and are unrelated to C and D$.$ In $2022,$ X Corp redeems all of A$$s stock for $$20.$ X Corp has $$30$ in accumulated E&P and $$0$ in current E&P$.$ At the beginning of $2022,$ A had a $$10$ basis in X Corp. A does not waive his family attribution. How is the redemption treated by A$?$

Group of answer choices

The redemption is a substantially disproportionate distribution $($section $302($b$)(2)).$ A recognizes a $$10$ capital gain.

The redemption is a complete termination of interest $($section $302($b$)(3)).$ A recognizes a $$10$ capital gain.

None of the available answer choices are correct.

The redemption is a distribution to which section $301$ applies. A recognizes a $$20$ dividend.Individuals A$,$ B$,$ C$,$ and D each own $25\%$ of X Corp. A and B are father and son, and are unrelated to C and D$.$ In $2022,$ X Corp redeems all of A$$s stock for $$20.$ X Corp has $$30$ in accumulated E&P and $$0$ in current E&P$.$ At the beginning of $2022,$ A had a $$10$ basis in X Corp. A does not waive his family attribution. How is the redemption treated by A$?$

Group of answer choices

The redemption is a substantially disproportionate distribution $($section $302($b$)(2)).$ A recognizes a $$10$ capital gain.

The redemption is a complete termination of interest $($section $302($b$)(3)).$ A recognizes a $$10$ capital gain.

None of the available answer choices are correct.

The redemption is a distribution to which section $301$ applies. A recognizes a $$20$ dividend.Individuals A$,$ B$,$ C$,$ and D each own $25\%$ of X Corp. A and B are father and son, and are unrelated to C and D$.$ In $2022,$ X Corp redeems all of A$$s stock for $$20.$ X Corp has $$30$ in accumulated E&P and $$0$ in current E&P$.$ At the beginning of $2022,$ A had a $$10$ basis in X Corp. A does not waive his family attribution. How is the redemption treated by A$?$

Group of answer choices

The redemption is a substantially disproportionate distribution $($section $302($b$)(2)).$ A recognizes a $$10$ capital gain.

The redemption is a complete termination of interest $($section $302($b$)(3)).$ A recognizes a $$10$ capital gain.

None of the available answer choices are correct.

The redemption is a distribution to which section $301$ applies. A recognizes a $$20$ dividend.