At a time when Emerald Corporation has E & P of $200,000, it distributes land (adjusted basis of $95,000 and fair market value of $180,000) to its sole shareholder, Sofia. a. What is Sofia's dividend income? $ 180,000 95,000 b. What is Sofia's basis in the land? $ c. What are Emerald's tax consequences? Emerald Corporation must recognize 85,000 on the distribution it made to Sofia. Feedback Check My Work a gain of $