Kathryn, an individual, owns all of the outstanding stock in Copper Corporation. Kathryn purchased her stock in Copper 11 years ago, and her basis is $18,000. At the beginning of this year, the corporation has $38,000 of accumulated E&P and no current E&P (before considering the effect of the distributions. What are the tax consequences to Kathryn (amount and type of income and basis in property received) and Copper Corporation (gain or loss and effect on E&P in each of the following situations?
a. Copper distributions land to Kathryn. The land was held as an investment and has a fair market value of $28,000 and an adjusted basis of $21,000.