Question 3

GroundedAir Flight Company had E&P of $50,000 when it distributed land held as an investmentwith a basis of

$10,000, a value of $50,000, but subject to a liability of $30,000 to an individual shareholder. After the distribution,E&P equals?

Question 4Grounded Air Flight Company had E&P of $50,000 when itdistributed land held as an investmentwith a basis of

$ I0 ,000, a value of $50,000, but subject to a liability of $30,000 to an individual shareholder. How much dividend incomedoes the shareholder report as a resultof this distribution?

Question 5GroundedAir Flight Company had E&P of $50,000 when it distributedland held as an investment with a basis of

$10,000, a value of $50,000, but subject to a liability of $30,000 to an individual shareholder. What basis will the shareholder assign to the property received in this distribution?