Acme Corp. distributes property to one of its shareholders with a $450,000 fair market value and a basis of $150,000. There is a liability associated with the property in the amount of $75,000. The shareholder also assumes the liability. Acme has enough E&P to cover the distribution. What is the amount of dividend income to the shareholder? What is the shareholders basis in the property received? What are the consequences to the corporation? If the liability was $500,000, would the answers be different? If so, what would they be?