2. Dr. Gasper owns 100% of stock of the C corporation Texas Cheesecake Depository, Inc. (Cheesecake). Cheesecake has total E&P of $20,000 and Gasper has a basis of $100,000 in his Cheesecake stock prior to the following distribution. Cheesecake makes a nonliquidating distribution to Gasper of land held for investment. The land has a $90,000 adjusted basis and a fair market value of $400,000 at the time of the distribution. What is Cheesecake's recognized gain or loss on this distribution?

A. $0 gain or loss

B. $90,000 gain

C. $310,000 gain

D. $280,000 gain

E. $400,000 loss