ABC Inc. had current earnings and profits of $50,000 on June 2, 2016 when it made a nonliquidating distribution to an individual shareholder of land that the corporation held for several years as an investment. On the date the land was distributed, ABC Inc.s adjusted basis in the land was $10,000, the fair market value of the land was $50,000, and the land was encumbered by a $30,000 mortgage. The liability was assumed by the shareholder. There were no other transactions that might affect ABC Inc.s earnings and profits for the year. What was the amount of ABC Inc.s earning and profits at the end of the year?

a. $30,000.

b. $50,000.

c. $60,000.

d. $70,000.

e. none of the above.