40) & 41) ZEE Corporation distributed property to its sole shareholder, Zachary. The FMV is $50,000, the adjusted basis to ZEE is $10,000 and it had a mortgage of $20,000, which Zachary assumed. Assuming ZEE has sufficient E & P,

40) Zachary received a dividend of

a $10,000

b $20,000

c $30,000

d $50,000

41) Zachary's basis in the property received from ZEE is

a $10,000

b $30,000

c $50,000

d $70,000