Chapter 18 Distributions Assignment In each of the following situations complete the blanks XYZ Corporation has one shareholder. The shareholder's tax basis in his shares is $100,000. Corporate E&P BEFORE the effects of any distribution is $100,000. The corporation distributes the following property in INDEPENDENT situations. Explain the tax effect to the corporation and to the sole shareholder First, the corporation distributes land with a FMV of $200,000 and a tax basis to the corporation of S100,000. Second, the corporation distributes land with a FMV of S100,000 and a tax basis to the corporation of $200,000