4 points Under a plan of complete liquidation, Madison Corporation distributes land (FMV $400,000; N/B $300,000) to James, a 25% shareholder James has a $200,000 basis in his McCurdy stock. The land is inventory in the hands of Madison Corporation. Madison Corporation must recognize $200,000 of ordinary income O $100,000 of long term capital gain No gain $100,000 of ordinary income