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English Corporation, with Earnings and Profits (E&P) of $500,000, distributes land (worth $300,000 and with an adjusted basis of $350,000) to its sole shareholder, Jeremy.

English Corporation, with Earnings and Profits ("E&P") of $500,000, distributes land (worth $300,000 and with an adjusted basis of $350,000) to its sole shareholder, Jeremy. The land is subject to a liability of $120,000 which Jeremy assumes. What are the tax consequences to: (1) English Corporation? (2) Jeremy?

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