Question 7 2 pts Peach Tree Corp. has no accumulated or current earnings and profits through December 31st of the current year. On December 31st Peach Tree Corp. distributes to Grape, its sole shareholder a parcel of land with a basis of $1,710,000 and a fair market value of $3,610,000, subject to a mortgage of $2,660,000, which Grape assumed. Grape's basis in the stock is $950,000. Grape plans on growing fruit trees on this land. What portion of the distribution to Grape will be treated as a dividend? Note: do not adjust earnings and profits for the tax effect of any gains or losses due to the distribution. $950,000 $3,610,000 $1,900,000 $2,660,000