Cane Corp., an S corp., distributes property (adjusted basis of $20,000 and fair market value of $19,000) to a shareholder named Todd. Immediately before the distribution, the basis of Todd's investment in Cane Corp. totaled $31,000. What is Todd's basis in his stock investment after the distribution?

		a. $31,000.
		b. $12,000.
		c. $20,000.
		d. $11,000.

What is Todd's basis in the property after the distribution?

		a. zero.
		b. $12,000.
		c. $20,000.
		d. $19,000.

What amount of loss would Cane Corp. recognize as a result of the distribution?

		a. $1,000.
		b. zero.
		c. None of the above.