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A C-corporation with a $200,000 E & P balance before distributions made a year-end distribution of land to its sole shareholder. The land distributed has a $90,000 fair market value, a $70,000 basis, and is subject to a $95,000 liability which is also assumed by the shareholder. Which of the following statements is true?a)The shareholder recognizes $95,000 of dividend income.b)The corporation must recognize a $20,000 gain.c)The shareholder's basis in the land received is $95,000.d)The shareholder recognizes $90,000 of dividend income.
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