Q is the sole shareholder of the T Corporation. At the beginning of the current year, Qs basis in the T stock is $16,000. During the current year, Q receives a distribution of land from the corporation. The lands tax basis is $10,000 and its fair value is $50,000. Assume a corporate tax rate of 21%. The corporations total earnings and profits is $18,000 at year-end, before taking into account any of the effects of the distribution.

1. Calculate T Corporations taxable gain, net of tax, if any.

2. Calculate Q's dividend income amount for the year.