Hufflepuff Corporation (a C corporation) had current and accumulated E&P of $500,000 as of December 31, 2021 (before considering the effect of distributions). On December 31, the company made a distribution of land to its sole shareholder, Helga. The land's fair market value was $100,000 and its tax and E&P basis to Hufflepuff was $120,000. The tax consequences of the distribution to Hufflepuff in 2021 would be: a. No loss recognized and a reduction in E&P of $120,000. b. $20.000 loss recognized and a reduction in E&P of $120,000. Oc. $20.000 loss recognized and a reduction in E&P of $100,000 Od. No loss recognized and a reduction in E&P of $100.000