8- Navy Corporation has E & P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Troy. The land is subject to a liability of $55,000 that Troy assumes. Troy has:

a.A taxable dividend of $25,000.

b.A taxable dividend of $15,000.

c.A taxable dividend of $70,000.

d.A basis in the machinery of $55,000.

9- In the current year, Warbler Corporation (E & P of $250,000) made the following property distributions to its shareholders (all corporations):

	Adjusted Basis	Fair Market Value
Pink Corporation stock (held for investment)	$150,000	$120,000
Non-LIFO inventory	80,000	110,000

Warbler Corporation is not a member of a controlled group. As a result of the distribution:

a.Warbler has a recognized gain of $30,000 and a recognized loss of $30,000.

b.The shareholders have dividend income of $200,000.

c.The shareholders have dividend income of $230,000.

d.Warbler has no recognized gain or loss.