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.

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 selling the property

e) None of the above