Required information

Problem $7-45($LO $7-2)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Volunteer Corporation reported taxable income of $$430,000$ from operations this year. During the year, the company

made a distribution of land to its sole shareholder, Rocky. The land's fair market value was $$124,500$ and its tax and E&P

basis to Volunteer was $$35,000.$ Rocky assumed a mortgage attached to the land of $$24,900.$ The company had

accumulated E&P of $$798,000$ at the beginning of the year.

Problem $7-45$ Part e $($Algo$)$

e$.$ What is Rocky's income tax basis in the land received from Volunteer?