On March 5, 2012, a shareholder transferred land (basis of $650,000, fair market value of $575,000) to

Question:

On March 5, 2012, a shareholder transferred land (basis of $650,000, fair market value of $575,000) to Roadrunner in a § 351 transaction. This was the only property transferred to Roadrunner at that time. On February 4, 2013, Roadrunner adopted a plan of liquidation. On May 16, 2013, Roadrunner distributed the land to Rhonda, a 15% shareholder. On the date of the the land had a fair market value of $400,000. Roadrunner never used the land for business purposes during the time it owned the property. What amount of loss may Roadrunner recognize on the of the land?
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