Assume a C corporation has $5,000 in current E&P and $10,000 in accumulated E&P. The C corp. makes a distribution of land (FMV of $20,000, basis of $16,000) and $7,000 cash to its sole shareholder. The shareholder’s basis in the C corp. stock is $8,000. What is the tax treatment of the distributions to the corporation and to the shareholder?