Digger corporation has $50,000 of current and accumulated E&P. On March 1, Digger distributes land with a $30,000 FMV and a $17,500 adjusted basis to Dave, its sole shareholder. The land is subject to a $5000 liability which dave assumes.

a) What are the amount and character of the distribution?

b) What is Dave's basis in the property?

c) When does his holding period for the property begin?