Rogers, Inc. is an S Corporation and has previous C Corporation Earnings and Profits in the amount of $21,000.At the end of Year 5, Rogers, Inc. had an Accumulated Adjustments Account balance of $33,000.At the end of the year, Rogers made a distribution to Mary, its only shareholder.The distribution consisted of land with a FMV and adjusted basis of $78,000.Assume Mary's basis in the corporate stock was $15,000 after any Year 5 income items and lines 1 and 2, but before line 3.

Line 1.As a result of the distribution, how much of the distribution is tax free to Mary as a distribution of S Corporation earnings?

Line 2.As a result of the distribution, how much of the distribution is a taxable dividend to Mary?

Line 3.What additional amount, if any, of the remaining distribution is taxable gain to Mary?