Problem: Before considering the distribution noted below, Husky, Inc. has $0 in current E&P and $0 in accumulated E&P. Husky distributes land with a fair market value of $100,000 and a tax and E&P basis of $20,000 to its sole shareholder, Jonathan. Before the distribution, Jonathan had a tax basis in his Husky stock of $60,000. The tax consequences of the distribution to Jonathan would be: Before considering the distribution noted below, Husky, Inc. has $0 in current E&P and $0 in accumulated E&P. Husky distributes land with a fair market value of $100,000 and a tax and E&P basis of $20,000 to its sole shareholder, Jonathan. Before the distribution, Jonathan had a tax basis in his Husky stock of $60,000. The tax consequences of the distribution to Jonathan would be: A. $0 dividend, $60,000 return of basis; $40,000 capital gain B. $100,00 dividend C. $80,000 dividend; $20,000 return of basis D. $0 dividend, $50,000 return of basis