Please help me to solve this problem Hufflepuff Corporation (a C corporation) had current and accumulated E&P of 5500,000 as of December 31, 2021 (before considering the effect ofdistributions). On December 31, the company made a distribution of land to its sole sareholder, Helga. The land's fair market value was $100.000 andits tax and E&P basis to Hufflepuff was $120.000. The tax consequences of the distribution to Hufflepuff in 2021 would berO a. No loss recognized and a reduction in E&P of $120.00o.b. 520.000 loss recognized and a reduction in E&P of $120,000.O S20.000 loss recognized and a reduction in E&P of $100.000Od. No loss recognized and a reduction in E&P of $100.000

Hufflepuff Corporation (a C corporation) had current and accumulated E&LP of $500.000 as of December 31, 2021 (before considering the effect of distributions). On December 31, the company made a distribution of land to its sole sareholder, Helga. The land's fair market value was $100.000 and its tax and E&P basis to Huffiepuff was $120.000. The tax consequences of the distribution to Hufflepuff in 2021 would ber O a. No loss recognized and a reduction in E&P of $120,000. OB.520.000 loss recognized and a reduction in E&P of $120.000. O s20.000 loss recognized and a reduction in E&P of $100.000 ONo loss recognized and a reduction in E&P of $100.000