what is the answer to this?

Sam owns 25% of CCC Corporation stock. Three others own 25% each too. CCC sells diamonds to retail jeweiry businesses. While CCC has a deficit in accumulated E \& P DEFICTT of S(556,000) at the beginning of the year, its current E \& P is $200,000. Since the company had a successful year, CCC makes a 550,000CASH distribution on 12/31 of the current year to each of the company s three shareholders, other than Sam, on December 31 INSIEAD of CASH, CCC distributes a diamond to Sam The adjusted basis of this diamond was $200,000 but it had a fair market value of 550,000 . Apparently the diamond market had crashed due to imitation diamonds being produced and sold! Anyway - Question 1 - Determine the effect of distributing the diamand to Sam on CCCis takable income-Line 30 of Form 1120 And, Question 2- What is the impact of the distribution on Sam's adjusted gross income on his Form 1040? Finaily - Question 3.- What is Sam's basis in the diamond? Question 4- Was the distribution of this diamond, to Sam, good tax planning on the part of CCC CORP? Why or why not