Exercise 12-21 (Algorithmic) (LO. 7) Vogel, Inc., an S corporation for five years, distributes tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $122,800 ten years ago and is currently worth $307,000. If an amount is zero, enter, "O" a. As a result of the distribution, Vogel recognizes a capital gain X which is reported on Schedule K, and of a proportionate share of it passes through to the shareholders of $ b. The net effect of the distribution on Vogel's AAA is a decrease X c. If the land had been purchased for $307,000 and was currently worth $122,800, Vogel recognizes a loss of $ and X basis in the land. the loss reduces Vogel's AAA. Jamari would take a Feedback Check My Work When an S corporation distributes property (instead of cash) to a shareholder, the effect on AAA and shareholder's basis must be determined