A Sole Shareholder Receives a Piece of Land from a Corporation

A sole shareholder receives a piece of land from a corporation as a dividend distribution.The land has a basis of $40,000 and a fair market value of $80,000; the shareholder's basis in his stock is $20,000,and this distribution is the only corporate activity for the year except for paying any tax owed on the land distribution.At the beginning of the year,the corporation had only $5,000 in accumulated earnings and profits.How will this distribution be treated for tax purposes by the shareholder?

A) $80,000 dividend
B) $39,000 dividend; $41,000 capital gain
C) $39,000 dividend; $20,000 return of capital; $21,000 capital gain
D) $60,000 dividend; $20,000 return of capital