16) Parent Corporation owns 100% of the single class of stock of Subsidiary Corporation Parent's basis in the Subsidiary stock is $500,000 when Parent completely liquidates Subsidiary Corporation within a single tax year. The Subsidiary Corporation assets have a $700,000 adjusted basis and an $800,000 FMV at liquidation. As a result of the liquidation, Parent must recognize a A) SO gain. B) $200,000 gain. C) $300,000 gain. D) none of the above