Minnie and Sutton are each 50% shareholders in the Hanley Corporation, a baby supply business. During the year, Hanley Corporation had E&P of $100,000. It distributed property A to Minnie, which had a FMV of $50,000, a basis of $30,000 and a liability of $10,000 which was assumed by Minnie. Hanley Corporation also distributed property B to Sutton, which had a FMV of $40,000 and a basis of $45,000. Please describe all the tax consequences to Hanley Corporation and to Minnie and Sutton, including an analysis of E&P, dividend taxability, and basis determinations.