. Subba Corporation has E & P of $240,000. Subba distributes airplane with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Mr. Pranay. Assume taxable transaction. The Airplane is subject to a liability of $55,000 that Pranay assumes. Pranay has:

A taxable dividend of $15,000.

A taxable dividend of $25,000.

A taxable dividend of $45,000.

A taxable dividend of $70,000.

A basis in the machinery of $55,000.