Global Corporation distributed property with an $850,000 fair market value and a $415,000 adjusted basis to one of its shareholders. The property was subject to a $230,000 mortgage, which the shareholder assumed. Global has ample E&P to cover any distribution made during the year. What is the amount of the shareholders dividend income on the distribution? What is the shareholders basis in the property received?

-For the shareholder:

What is the amount of the distribution?

What is the basis of the property in the shareholder's hands?

-For the corporation:

Is a gain or loss recognized as a result of the distribution?

What is the effect of the distribution on E&P?