Second Hand Lions, Inc., a calendar year S corporation, is owned by four shareholders: Ann (30%), Becky(20%), Chris(15%), and David (35%). Second Hand Lions owns investment land that was purchased for $190,000 four years ago. On September 14, when the land is worth $270,000, it is distributed to David. Assuming that Davids basis in his S corporation stock is $250,000 on the distribution date, discuss any Federal income tax ramifications. Ignore the 20% QBI deduction.