ABC Corporation distributed a parcel of land to its sole shareholder, XYZ. The land (value at $25,000 and cost $15,000) had been used in the corporation's phone operations.

1) What is the effect of the distribution on XYZ's taxable income?

2) What is XYZ's basis in the land?

3) What is the effect of the distribution on ABC's taxable income?

4) What is the effect of the distribution on ABC's E&P?

5) What is the effect of the distribution on ABC Corporation's taxable income if the value of the land is $15,000 and the cost is $25,000?