Renee, the sole shareholder of indigo corporation, sold her stock to chad on july 1 for $180,000. renee's stock basis at the beginning of the year was $120,000. indigo made a $60,000 cash distribution to renee immediately before the sale, while chad received a $120,000 cash distribution from indigo on november 1. as of the beginning of the current year, indigo had $26,000 in accumulated e & p, while current e & p (before distributions) was $90,000. which of the following statements is correct? renee recognizes a $60,000 gain on the sale of the stock. a. b. renee recognizes a $64,000 gain on the sale of the stock. c. chad recognizes dividend income of $120,000. d. chad recognizes dividend income of $30,000. e. none of the above.