2 14. Pursuant to a complete liquidation, Richards Corporation distributes the following to a shareholder: Inventory, basis $10,000, FMV $20,000; and land held as an investment, basis $5,000, FMV $40,000. The land is subject to a $30,000 liability. What are the amounts and character of income to be recognized by Richards Corporation? $10,000 ordinary income; $35,000 capital gain $10,000 ordinary income; $65,000 capital gain $0 ordinary income; $0 capital gain $10,000 ordinary income; $5,000 capital gain .