I:16-54 Property Distributions. Without liquidating, Park Corporation distributes equipment with a $70,000 adjusted basis and a $80,000 FMV to Pam. The equipment is subject to a $25,000 mortgage assumed by Pam. Park has $300,000 of E&P (excluding the distribution).

a. How much gain (if any) does Park recognize on the distribution of the equipment?

b. What distribution amount is taxable as a dividend to Pam?

c. What is Pam’s basis in the equipment?