Turnip, Inc., an S corporation, distributes a tract of land held as an investment (FMV = $90,000, basis = $22,000) to Chang, its sole shareholder.An AAA bypass election was not made.Turnip, Inc. has an AAA balance of $5,000, an OAA balance of $10,000, a PTI balance of $0 and an AEP balance of $20,000. Chang's basis in his Turnip's stock is $30,000 and has an individual marginal tax rate of 32%, and both a dividend and long-term capital gains tax rate of 15%.

a.What is Turnip's recognized gain on the distribution?

b.What is the amount of Chang's distribution?

c.What is Turnip's ending AAA balance?

d.What is Turnip's ending PTI balance?

e.What is Turnip's ending AEP balance?

f.What is Turnip's ending OAA balance?

g.What is the amount of the excess distribution?

h.What is Chang's tax liability as a result of the distribution?

i.What is Chang's basis in the land?

j.What is Chang's basis in his Turnip stock?