Heather, an individual, owns all the outstanding stock in Silver Corporation. She has held the stock for 9 years. Her basis in the shares is $56,000. At the beginning of the year, Silver had E&P (both accumulated and current) of $76,000. What is the amount of the distribution to Heather, the gain/loss recognized by the Corporation, the amount of the dividend, and the effect on the E&P of the following transactions?

a. Silver distributes land to Heather. The land has been held for investment and has a FMV of $54,000 and an A/B to the corporation of $42,000.

b. Assume that the land is subject to a $46,000 mortgage. How would your answer to a. change?

c. Assume the facts in a except that the land has a FMV of $54,000 and an A/B of $62,000 on the date of the distribution.