Kiwi Corporation has E&P of $150,000. It distributes land with a fair market value of $50,000 (adjusted basis of $60,000) to its sole shareholder, Connor. The land is subject to a liability of $45,000 that Connor assumes.

a. Connor has a taxable dividend of $60,000.

b. Connor has a taxable dividend of $15,000.

c. Connor has a taxable dividend of $50,000.

d. Connor has a taxable dividend of $5,000.

e. None of the above statements are correct.