Pelican, Inc., a C corporation, distributes $275,000 to its shareholder, Jean, and land worth $275,000 (adjusted basis of $185,000) to its shareholder, Pam. Pelican has earnings and profits of $900,000. Determine the tax consequences to Pelican, Jean, and Pam.

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The Answer of Pelican, Inc., a C corporation, distributes $275,000 to its shareholder, Jean, and land worth $275,000 (adjusted basis of $185,000) to its shareholder, Pam. Pelican has earnings and profits of $900,000. Determine the tax consequences to Pelican, Jean, and Pam.