Toronto Maple Corporation (TMC) had current and accumulated E&P of $500,000 at December 31 20X4. On December 31, the company made a distribution of land to its sole shareholder, Dave Marston. The land's fair market value was $100,000 and its tax and E&P adjusted tax basis to TMC was $25,000. Dave assumed a mortgage attached to the land of $10,000. The tax consequences of the distribution to Dave in 20X4 would be: $100,000 dividend and an adjusted tax basis in the land of $100,000. $100,000 dividend and an adjusted tax basis in the land of $90,000. Dividend of $90,000 and an adjusted tax basis in the land of $100,000. Dividend of $90,000 and an adjusted tax basis in the land of $90,000.