Bill incorporated his business four years ago and owns 100 percent of its stock. The corporation distributes

Question:

Bill incorporated his business four years ago and owns 100 percent of its stock. The corporation distributes a piece of land, used as a parking lot for the customers, to Bill. Bill's basis in his stock is $\$ 21,000$, the land has a basis of $\$ 7,000$ and a value of $\$ 24,000$, and E\&P is $\$ 5,000$.

a. What are the tax consequences to the corporation?

b. To Bill?

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