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Spendthrift Corporation has E & P of $ 3 0 0 , 0 0 0 . It distributes land with a fair market value of

Spendthrift Corporation has E & P of $300,000. It distributes land with a fair market value of $95,000(adjusted basis of $40,000) to its sole shareholder, Steven. The land is subject to a liability of $105,000.
What gain, if any, does Spendthrift recognize upon the distribution?
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