Connie Sold 200 Shares of § 306 Stock (Basis of $10,000)in

Connie sold 200 shares of § 306 stock (basis of $10,000) in Blackbird Corporation to Larry (an unrelated individual) for $30,000.When the § 306 stock was issued to Connie,the stock had a value of $30,000,and Blackbird had E & P of $500,000.At the time the § 306 stock is sold,Blackbird's E & P is $550,000.At the time of the sale,Connie owned 750 shares of common stock (basis of $65,000) in Blackbird.With respect to the sale of the § 306 stock by Connie:

A) Connie has a $30,000 capital gain.
B) Blackbird Corporation reduces its E & P by $30,000.
C) Connie has a $20,000 capital gain.
D) Connie has a $75,000 basis in the common stock.
E) None of the above.