Palm Corporation is owned 60 percent by Jay and 40 percent by Scott. Jay and Scott are unrelated individuals. Palm's two principal assets are cash of \(\$ 140,000\) and a building that Palm purchased 10 years ago and that now has an adjusted basis of \(\$ 80,000\) and a fair market value of \(\$ 60,000\). What amount of loss is recognized by Palm Corporation if it makes the following alternative distributions in complete liquidation?

a. Palm distributes the building plus \(\$ 60,000\) in cash to Jay and \(\$ 80,000\) in cash to Scott.

b. Palm distributes \(\$ 120,000\) in cash to Jay and the building plus \(\$ 20,000\) in cash to Scott.

c. Palm distributes 60 percent of the cash and a 60 percent interest in the building to Jay and 40 percent of the cash and a 40 percent interest in the building to Scott.

d. Same as (c), except that the building had been contributed to Palm Corporation by Scott as a contribution to capital during 2017, when the building's basis was \(\$ 90,000\) and its fair market value was \(\$ 65,000\).

e. Same as (c), except that the building had been contributed to Palm Corporation by Jay as a contribution to capital four years ago (during 2014), when the building's basis was \(\$ 120,000\) and its fair market value was \(\$ 110,000\).