Tar Heel Corporation had current and accumulated E&P of $$620,000$ at December $31,$ year $1.$ On December $31,$ the company made a distribution of land to its sole shareholder, William Roy. The land's fair market value was $$109,000$ and its tax and E&P basis to Tar Heel was $$37,000.$ William assumed a mortgage attached to the land of $$11,000.$ The tax consequences of the distribution to William in year $1$ would be:

A$)$ $$109,000$ dividend and a tax basis in the land of $$109,000.$

B$)$ $$109,000$ dividend and a tax basis in the land of $$98,000.$

C$)$ dividend of $$98,000$ and a tax basis in the land of $$109,000.$

D$)$ dividend of $$98,000$ and a tax basis in the land of $$98,000.$