1.Turnip, Inc., an S corporation, distributes a tract of land held as an investment(FMV = $82,000, basis = $22,000) to Chang, its sole shareholder.An AAA bypass election was not made.Turnip, Inc. has an AAA balance of $10,000, an OAA balance of $15,000, a PTI balance of $5,000 and an AEP balance of $0. Chang's basis in his Turnip's stock is $20,000, has an individual marginal tax rate of 32% and a capital gains tax rate of 15%.

a.What is Turnip's recognized gain on the distribution?__________________

b.What is the amount of Chang's distribution?__________________

c.What is the tax impact of the distribution to Chang? __________________

d.What is Chang's basis in the land?__________________

e. What is Chang's basis in his Turnip stock?__________________