During the Year, T Corporation Distributed Land Used in Its

During the year, T Corporation distributed land used in its business to its sole shareholder.The land was worth $50,000 (basis, $10,000) .Assuming the corporation has substantial earnings and profits, and ignoring the effect of any taxes on the distribution, the net effect of the transaction on E&P will be

A) An increase of $40,000
B) A decrease of $50,000
C) An increase of $10,000
D) A decrease of $10,000
E) None of the above