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 has accumulated E&P of $ 16,000.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 gain of $20,000. b. Each shareholder has a dividend of $4,000. c. Each shareholder has a gain of $20,000 and a dividend of $4,000. d. Each shareholder has no gain or loss until the property is sold. e. None of the above.

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