Smith Co. has no E\&P, current or accumulated, prior to the following independent transactions with its sole shareholder, Chris:

Distribution of LIFO inventory with a basis of \(\$ 7,000\), a FIFO value of \(\$ 11,000\), and a market value of \(\$ 13,000\).

Distribution of land with a basis of \(\$ 21,000\), a mortgage of \(\$ 34,000\), and a value of \(\$ 58,000\).

Sale of property to Chris for \(\$ 20,000\) (basis \(\$ 5,000\), value \(\$ 25,000\) ).

a. Does Chris have to recognize any income?

b. Does Smith Co. have any gains or losses?

c. What are the required adjustments to \(\mathrm{E} \& \mathrm{P}\) ?