Rust Corporation distributes property to its sole shareholder, Andre. The property has a fair market value of $350,000, an adjusted basis of $205,000, and is subject to a liability of $220,000. Current E&P is $500,000. With respect to the distribution, which of the following statements is correct? a. Rust has a gain of $130,000 and Andre's basis in the distributed property is $350,000. b. Rust has a gain of $145,000 and Andre's basis in the distributed property is $130,000 c. Rust has a gain of $145,000 and Andre has dividend income of $130,000. d. Rust has a gain of $15,000 and Andre has dividend income of $350,000