86. The stock of Lavender Corporation is held as follows: 80% by Jade Corporation (basis of $400,000) and 20% by Tiffany (basis of $100,000). Lavender Corporation is liquidated in December of the current year, pursuant to a plan adopted earlier in the year. Pursuant to the liquidation, Lavender Corporation distributed Asset A (basis of $600.000, fair market value of $900,000) to Jade, and Asset B (basis of $250,000, fair market value of $225,000) to Tiffany. No election is made under $ 338. With respect to the liquidation of Lavender: a. Lavender recognizes a loss of $25,000 on the distribution of Asset B. b. Jade has a basis in Asset A of $900,000. c. Tiffany has a basis in Asset B of $225,000. d. Jade recognizes a gain of $500,000. e. Lavender recognizes a gain of $300,000 on the distribution of Asset A