Zebra Corporation distributed property in proportionate redemption of its stock in partial liquidation. Zebra had earnings and profits exceeding the amount of the distribution. A distribution was made to Tiger Corporation, a 25% shareholder. The distributed property had a $75,000 fair market value and a $40,000 adjusted basis to Zebra. Tiger had an adjusted basis of $25,000 in the stock redeemed by Zebra. What is the tax effect to Zebra?

a. $35,000 gain on the distribution

b. $0 gain or loss on the distribution

c. a net decrease in earnings and profits of $5,000

d. a net decrease in earnings and profits of $75,000

A short explanation would be helpful.