2. Brazzos (a calendar year S Corporation) has a BOY balance in AAA of $130,000, AEP $100,000, and OAA $0. They make a distribution to their sole shareholder Jane on December 31 of land with FMV $90,000 and basis of $75,000. Janes stock basis at the BOY is $150,000. (4.5 points)

1. What is the tax impact of the distribution to Jane if no elections are made?
2. How would your answer change if the bypass election was made?
3. Bonus! How would your answer in part A change if the balance in AEP was $0.