4. In 20xs, Iron Corporation sold some excess property for $2,500 to Eric, one of its shareholders. On the date of sale, the property had a FMV of $6,000 and an adjusted basis of $4,000 Eric must report a dividend of a so b. $2,000 c. $2,500 d. $3,500 5. On December 1, 20X8, Plum Corp. distributed to its sole shareholder a parcel of land held as an investment that was subject to a mortgage of $5,000. The land's adjusted basis was $6,500, FMV $14,000. For the year ended December 31, 20x8, Plum had earnings and profits of $30,000 regard to the dividend distribution. By how much should the dividend distribution reduce the earnings and profits for 20X8? a. $1,500 b. $6,500 c. $9,000 d. $14,000 6. Thistle Corporation's earnings and profits for 20X8, its first year of operations, were $70,000. In December 20X8 it distributed to Lee, one of its shareholders, land with a basis of $20,000 and a FMV of $60,000. What is the amount of distribution that will be taxed as a dividend to Lee? a. $0 b. $20,000 c. $50,000 d. $60,000 7. In item 6 above, if Lee also assumed a liability of $50,000 on the land, what will be Lee's tax basis in the land it received? a. $0 b. $20,000 c. $50,000 d. $60,000 8. Pim, Inc., which had earnings and profits of $100,000, distributed land to Alex, a stockholder adjusted basis for this land was $3,000. The land had a FMV of $12,000 and was subject to a Pim's mortgage liability of $5,000, which was assumed by Alex. How much of the distribution was taxable o Alex as a dividend? . $9,000 b. $7,000 c. $4,000 d. $3,000