Vogel, inc., an s corporation for five years, distributes a tract of land held as an investment to jamari, its majority shareholder. the land was purchased for $45,000 ten years ago and is currently worth $120,000.

a. as a result of the distribution, what is vogel’s recognized capital gain? how much is reported as a distribution to shareholders?
b. what is the net effect of the distribution on vogel’s aaa?
c. assume instead that the land had been purchased for $120,000 and was currently worth $45,000.
how much would vogel recognize as a loss? what would be the net effect on vogel’s aaa? what would be jamari’s basis in the land?