An S Corporation has four shareholders. The corporation has land with a fair market value of $100,000 and a basis of $20,000. The corporation distributes the land in-kind to the four shareholders. Each shareholders basis in the corporation is $1,000. Assume the corporation has always been an S Corporation. Assume also that the AAA balance prior to the property distribution is zero. Group of answer choices

a. Each shareholder has a $20,000 gain.

b. Each shareholder has a $20,000 gain and a $4,000 gain.

c. Each shareholder has a $4,000 gain.

d. Each shareholder has no gain or loss until selling the property.

e. None of the above.