In 2021, Art Corporation purchased land from its sole shareholder Michelle for 200,000. Michelle’s basis in the land was 20,000. The land was recently appraised for 150,000, but Art paid 50,000 more because Michelle needed the cash. Michelle plans to report a capital gain of 180,000 on her 2021 return. Art has current and accumulated earnings and profits of 40,000 in 2021 and paid no cash dividends.

What adjustments, if any, would be made to Michelle’s taxable income for 2021.