B) what is his basis in the machineryC) what is the effect on corporation earning and E&P

900,000 $30,000 $30,000 ob 2 XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $20,000 Fair Market Value of $150,000 to sole shareholder. The property is subject to Liability of $10,000 which shareholder assumes (A) How much dividend Johnson report