1. (4 Points) Sara, an individual, owns 100% of the outstanding stock in Mississippi Gulf Coast Corp. Sara purchased the stock 1 % years ago, and her basis is $15,000. At the beginning of 2019, the corporation has $15,000 of accumulated E&P and a current E&P of $56,000 (before considering the effect of the distribution). What are the tax consequences to Sara and the corporation? A Mississippi Gulf Coast Corp. distributes land to Sara. The land was held as an investment and has a fair market value (FMV) of $30,000 and an adjusted basis of $18,000. The land is subject to a note of $10,000 which Sara assumes. 1. Gain or loss recognized by Mississippi Gulf Coast Corp. 2. Gain or loss recognized by Sara 3. Basis of the land to Sara 4. Effect on E&P due to the distribution