Carolina Corporation, an S corporation, has no corporate E&P from its years as a C corporation. At the end of the year, it distributes a small parcel of land to its sole shareholder, Shadiya. The fair market value of the parcel is $86,800 and its tax basis is $52,000. Shadiyas basis in her stock is $20,000. Assume Carolina Corporation reported $0 taxable income before considering the tax consequences of the distribution. (Leave no answer blank. Enter zero if applicable.)

a. What amount of gain or loss, if any, does Carolina Corporation recognize on the distribution?