Fargo Corporation holds $5 million in accumulated E & P. It distributes toLeilei, one of its shareholders, land worth $310,000; basis of the land to Fargo is $260,000. Which statement is incorrect?

a.	Fargo Corporation recognizes a gain of $50,000.
b.	Fargos E & P is increased by the $50,000 gain and decreased by the $310,000 fair market value of the distribution.
c.	Corporate noncash property distributions reduce E & P by the greater of the fair market value or the adjusted basis of property distributed, less the amount of any liability on the property.
d.	There is no impact on Fargo E&P.
e.	None of the choices.