C:$4-36$ Distribution of Depreciable Property. On May $15$ of the current year, Quick Corporation distributes to its shareholder Calvin a building having a $$250,000$ FMV and used in Quick's business. The building originally cost $$180,000.$ Quick claimed $$30,000$ of straight$-$line depreciation, so that the adjusted basis of the building on the date of distribution for taxable income purposes is $$150,000.$ The adjusted basis of the building for E&P purposes is $$160,000.$ The building is subject to an $$80,000$ mortgage, which Calvin assumes. Quick has an E&P balance exceeding the amount distributed and is subject to a $34\%$ marginal tax rate.

a$.$ What are the amount and character of the income Calvin recognizes as a result of the distribution?

b$.$ What is Calvin's basis in the building?

c$.$ What are the amount and character of Quick's gain or loss as a result of the distribution?

d$.$ What effect does the distribution have on Quick's E&P$?$