$1.$ Steven owned $100$ shares of stock in the Dover Corporation with an adjusted basis of $$50,000.$ During the current year, Dover completely liquidated and distributed the following to Steven:

Cash $ $25,000$

Land at fair market value $450,000$

Mortgage on the land $(200,000)$

Steven will assume the mortgage on the land. What is Steven$$s basis in the land received?

a$.$ $$50,000$

b$.$ $$75,000$

c$.$ $$250,000$

d$.$ $$450,000$

$2.$ Veronica, who owned $10$ percent of the stock in Titus Corporation stock, contributed land with an adjusted basis of $$100,000$ and a fair market value of $$10,000$ to Titus Corporation in exchange for another $100$ shares of Titus stock. At the same time, Mary, who owned the other $90$ percent of Titus stock, contributed $$90,000$ in cash for another $900$ shares of Titus stock. The primary purpose of the contribution was to have Titus recognize the loss in its pending liquidation. One year later, Titus adopted a plan of complete liquidation and distributed the land back to Veronica. The land$$s basis and fair market value did not change during the time that Titus held it$.$ What is Titus Corporation$$s recognized gain or loss on the distribution of the land?

a$.$ $$10,000$ gain

b$.$ No gain or loss

c$.$ $$90,000$ loss

d$.$ $$100,000$ loss