A corporation distributes land and the related liability in a nonliquidating distribution to a shareholder. The land (a capital asset) has an adjusted basis of $50,000, an FMV of $75,000 and is subject to a mortgage of $80,000. The corporation must recognize

A) a $25,000 capital loss.

B) a $30,000 capital gain.

C) a $80,000 capital gain.

D) no gain or loss.

Please provide an explanation, thank you!