1. The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $40,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What amount of gain or loss would Beta recognize on the distribution?

   		a. $30,000 loss.
   		b. $30,000 gain.
   		c. $50,000 gain.
   		d. $50,000 loss.
   		e. none of the above What is Bens basis in the distributed property?

2. 		a. $30,000.
   		b. zero.
   		c. $40,000.
   		d. $50,000.
   		e. none of the above