During the current year, Zion Corporation distributes to its shareholder Moses $40,000 in cash and land with a $80,000 FMV. The land has a $27,000 adjusted basis (for both taxable income and E&P purposes) and is subject to a $87,000 mortgage, which Moses assumes. Zion has an E&P balance exceeding the amount distributed and is subject to a 21% corporate tax rate. a. What are the amount and character of the income Moses recognizes as a result of the distribution? b. What is Moses's basis in the land? c. What are the amount and character of Zion's gain or loss as a result of the distribution