In the current year, Bledsoe Corporation has $100,000 of current and accumulated E&P. On March 2, Bledsoe Corporation distributes to Ricky, a shareholder, a parcel of land (a capital asset) having a $70,000 FMV. The land has a $30,000 adjusted basis (for both tax and E&P purposes) to Bledsoe Corporation and is subject to an $12,000 mortgage, which Ricky assumes. Assume a 34% marginal corporate tax rate. Please provide full explanations for each answer.

a) What is the amount and character of the income Ricky recognizes as a result of the distribution?

b) What is Ricky's basis for the land?

c) What is the amount and character of Bledsoe Corporation's gain or loss as a result of the distribution?

d) What effect does the distribution have on Bledsoe Corporation's E&P?