Carleton Corporation distributes investment securities to each of its individual shareholders. The total basis of these securities is $60,000 and the total fair market value of them is $90,000. However, these securities were used as collateral for a loan to the corporation and $30,000 of that loan still encumbers the securities. The shareholders agree to assume this loan proportionally. Select the true statement from the list below.

Question a options:

	a. The corporation will transfer out $90,000 of E&P on the distribution after a gain is recognized
	b. The corporation will transfer out (after a gain is recognized) $60,000 of E&P on the distribution
	c. The shareholders will have $90,000 of dividend income in total
	d. The shareholders will have a $60,000 basis in the securities

b. How much is the dividend income to the shareholders?

c. How much is the shareholders' total basis in the securities received?