Among the properties that King Corporation distributed to Luther, its sole shareholder, as part of its complete liquidation, is land having an adjusted basis of $40,000 and fair market value of $56,000. The land was subject to a $58,000 mortgage that Luther assumed for legitimate business purpose. What is the amount of gain or loss King Crop must recognize on the distribution? A.0 B. $18,000 Gain C. 2,000 loss D.16,000 gain