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Warner Corporation, which has current E&P of $9,000 and no accumulated E&P, distributed land to Keith, an individual shareholder. Warner's basis in the land was $10,000 and the land had a fair market value of $2,000. 1) What is the balance of E&P after the distribution? 1. ($3,000) 2. ($1,000) 3. $0 4. $7,000 ii. As a result of the distribution, Warner Corporation recognizes: 1. $0 gain or loss 2. $1,000 loss 3. $7,000 loss 4. $8,000 loss iii. How much of the distribution was taxable to Keith as a dividend? 1. $0 2. $2,000 3. $8,000 4. $9,000 5. $10,000