For each of the following independent distributions to shareholders, determine the impact on E&P;

recognized gain, if any, to the distributing corporation; the amount of the dividend; and the basis in the property to the distributee, assuming ample E&P to start with:

a. A cash distribution of $50,000.

b. The distribution of an IOU with a face value of $50,000 and a market value of $45,000.

c. The distribution of inventory with a basis of $2,000 and a value of $5,000 to an individual shareholder.

d. The distribution of land with a basis of $25,000, a mortgage of $40,000, and a value of $100,000 to an individual shareholder.