Haycraft Corporation makes a property distribution to its sole shareholder, Jane. The property distributed is a house with a FMV of $189,000 and basis of $154,000. The house is subject to a $245,000 mortgage that Jane assumes. Before considering the consequences of the distribution, Haycraft's E&P is $35,000. Haycraft makes no other distributions during the current year.

What is Jane's basis in the house she receives? A. $0 B. $154,000 C. $189,000 D. $245,000

What is Jane's taxable income resulting from the distribution? A. No capital gain or dividend income B. $91,000 capital gain C. $189,000 dividend income D. $245,000 dividend income

What is Haycraft's taxable gain on the distribution of the house? A. $0 B. $21,000 C. $56,000 D. $91,000

What is Haycraft's E&P after the distribution? (Please show your work.)