Navy Corporation has E&P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Troy. The land is subject to a liability of $55,000 that Troy assumes. Troy has:

a. A taxable dividend of $15,000

b. A taxable dividend of $25,000

c. A taxable dividend of $45,000

d. A taxable dividend of $70,000

e. A basis in the machinery of $55,000