Tar Heel Corporation had current and accumulated E&P of $500,000 at December 31 20X3. On December 31, the company made a distribution of land to its sole shareholder, William Roy. The land's fair market value was $120,000 and its tax and E&P basis to Tar Heel was $25,000. William assumed a mortgage attached to the land of $20,000. The tax consequences of the distribution to William in 20X3 would be: