George owns 100% of the stock of Yahoo. Yahoo has E&P of $20,000 and George has a basis of $100,000 in Yahoo corporation stock prior to the events noted below.

Yahoo assets:

1. Grange Land with adjusted basis $100,000, fair market value $400,000

2. Lake Land with adjusted basis $800,000, fair market value $400,000

Ignore tax liability when adjusting for E&P.

A. Yahoo makes an operating distribution of Grange to George. Yahoo's recognized gain is $300,000, increases E&P by $300,000. What is George's basis in Grange after the distribution? What is George's recognized gain/loss with respect to the distribution? What is the character of such gain/loss?