The Alpha Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Alpha distributes the property in a nonliquidating distribution (along with the debt) to Jen, its sole shareholder. What is the net effect of this transaction on Alpha Corporation's E&P?

a. $60,000 increase.b. $60,000 decrease.c. $20,000 decrease.d. $30,000 increase.e. none of the above.