QUESTION 2 Vach Corporation (a calendar year corporation) had $100,000 of accumulated E&P at the beginning of the year and $200,000 of current E&P for the year before considering the impact of the following. On July 1, Vach Corporation distributed a parcel of land worth $120,000 to its sole shareholder. The land had a $60,000 adjusted basis to Vach Corporation and was subject to a $16,000 mortgage, which the shareholder assumed. There were no other distributions during the year. What is Vach's E&P on the first day of new year? OA $209,040 OB. $225,040 OC. $243,400 OD. $196,000 OE. $259,400