A Corporation Distributes Land Worth $200,000 to Its Sole Shareholder $$\begin{array} { | l | l | } \hline \text { Corporation } & \text { Shareholder } \\\hline \$ 0 & \$ 80,000 \\\hline\end{array}$$

A corporation distributes land worth $200,000 to its sole shareholder.The corporation had purchased the land several years ago for $120,000.The corporation has over $1 million of E&P.How much income will the corporation and the shareholder recognize?

A) $$\begin{array} { | l | l | } \hline \text { Corporation } & \text { Shareholder } \\\hline \$ 0 & \$ 80,000 \\\hline\end{array}$$
B) $$\begin{array} {| l| l | } \hline \text { Corporation } & \text { Shareholder } \\\hline \$ 0 & \$ 120,000\\\hline\end{array}$$
C) $$\begin{array} { |l | l| } \hline \text { Corporation } & \text { Shareholder } \\\hline \$ 80,000 & \$ 0 \\\hline\end{array}$$
D) $$\begin{array} { | l | l| } \hline \text { Corporation } & \text { Shareholder } \\\hline \$ 80,000 & \$ 200,000 \\\hline\end{array}$$