Shrimp Corporation (ShrimpCo) has one shareholder, Bubba, who has a $30,000 basis in his ShrimpCo stock. ShrimpCo makes a nonliquidating distribution to Bubba of land with a basis of $55,000 and a fair market value of $70,000. ShrimpCo has AE&P at the beginning of the year equal to $40,000. Before taking into account the effect of the distribution, ShrimpCo has CE&P for the current year equal to $20,000.

1. How much of the distribution (if any) is treated as a dividend to Bubba?
   1. $60,000
   2. $70,000
   3. $55,000
   4. $35,000
   5. $30,000
2. What basis will Bubba obtain in the land?
   1. $55,000
   2. $60,000
   3. $35,000
   4. $0
   5. $70,000
3. How much gain or loss (if any) is recognized by ShrimpCo on the distribution of land to Bubba?
   1. $0 gain or loss
   2. $20,000 gain
   3. $30,000 gain
   4. $15,000 gain
   5. $40,000 gain
4. What is ShrimpCos AE&P at the end of the year?
   1. $5,000
   2. ($10,000)
   3. $0
   4. ($30,000)
   5. $20,000

Please provide a brief explanation