Pro Co.'s accumulated E&P is $100,000. On June 15, it distributes land to its sole shareholder (Brenda). Pro Co.'s adjusted basis in the land is $40,000 and the land's fair market value is $60,000. What are the tax consequences of the distribution?

a) Brendas dividend income: $40,000; Pro Cos recognized gain: $0

b) Brendas dividend income: $40,000; Pro Cos recognized gain: $20,000

c) Brendas dividend income: $60,000; Pro Cos recognized gain: $0

d) Brendas dividend income: $60,000; Pro Cos recognized gain: $20,000