John Henry Corporation has positive Current Earnings And Profits (E&P) of $40,000. It distributes Land worth (Fair Market Value) $24,000 (Adjusted Basis of $18,000) to Helen, an individual shareholder. The Land is subject to a mortgage of $13,000 which Helen assumes. Helen has Taxable Income (Dividends) of:

1. $24,000
2. $13,000
3. $11,000
4. $40,000