Beige,Inc,Has 3,000 Shares of Stock Authorized and 1,000 Shares Outstanding

Multiple Choice

Beige,Inc.,has 3,000 shares of stock authorized and 1,000 shares outstanding.The shares are owned by Sam (600 shares) and Lois (400 shares) .Sam's adjusted basis for his stock is $60,000 and Lois' adjusted basis for her stock is $40,000.Beige's earnings and profits are $300,000.Beige redeems 200 of Lois' shares for $100,000.Determine the amount of Lois' recognized gain (1) if she is Sam's mother and (2) if they are unrelated.

A) $0 and $0.
B) $100,000 and $60,000.
C) $100,000 and $80,000.
D) $100,000 and $100,000.
E) None of the above.