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?

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

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

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

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

Harold Hampter owns 100 percent of Clawson Company. Clawson's E&P is $500,000. Harold needs to withdraw $100,000 from the company. Which of the following transactions might be reclassified as a constructive (disguised) dividend?

$100,000 bonus; Harold's compensation (before the bonus) is $350,000, relatively equal to what other presidents of similarly sized companies earn.

$100,000 in return for a promissory note from Harold, due upon demand but not having a fixed due date.

$100,000 in return for property Harold would lease to the corporation.

$100,000 gift from the corporation to Harold.

All of the above.