1) Bard Corp., which had earning and profits of $500,000 made a nonliquidation distribution of property to its stockholders during the current year. This property had an adjusted basis of $10,000 and a fair market value of $15,000 at the date of distribution. How much gain did X Corp. have to recognize on tis distribution?

a) 0

b) 5,000

c) 10,000

d) 15,000

Please explain why...

2) Pym Inc. which had earnings and profits of $100,000, distributed and to Alex Rowe, a stock holder Pym's adjusted basis for this land was $ 3,000. The land had a fair market value of $12,000 and was subject to a mortgage liability of $5,000, which was asumed by Rowe. HOw much of the distribution was taxable to Rowe as a dividend?

a) 9,000

b) 7,000

c) 4,000

d) 3,000

Please explain why .....

Pease somebody help with this, this morning nobody answer. Thank you