Problem 5-38 (LO. 1,5) Heather, an individual, owns all of the outstanding stock in Silver Corporation. Heather purchased her stock in Silver nine years ago, and her basis is $56,000. At the beginning of this year, the corporation has $76,000 of accumulated E & P and no current E & P (before considering the effect of the distributions as noted below). What are the tax consequences to Heather (amount and type of income and basis in property received) and Silver Corporation (gain or loss and effect on E & P) in each of the following independent situations? If an amount is zero, enter "O". c. Silver distributes land to Heather. The land was held as an investment and has a fair market value of $54,000 and an adjusted basis of $42,000. The land distributed is subject to a $46,000 mortgage (which Heather assumes). Assume the corporation has $76,000 of accumulated E & P and no current E&R Heather has a and her basis in the land is s Silver recognizes a . After the distribution, the E&P beginning balance for next year is s of curren E&P and of accumulated E & R. d. Silver distributes land to Heather. The land was held as an investment and has a fair market value of $54,000 and an adjusted basis of $62,000 on the date of the distribution. Assume the corporation has $76,000 of accumulated E&P and no current E&R Heather has a and her basis in the land is . Silver realizes a After the distribution, the E & P beginning balance for next year is s accumulated E&P of