Ayanna corporation is owned eighty percent (80%) by Kendra and twenty percent (20%) by Barbara who are unrelated to each other. Pursuant to a complete liquidation, Ayanna corporation distributed Land that had a fair market value on the date of distribution of

$100,000 and a basis to Ayanna corporation of $300,000. The Land was acquired by Ayanna corporation in a section 351 transfer two (2) years ago from Barbara when its fair market vlue was $200,000 (Assume that there was no business purpose for the transfer.) what is the recognized loss for Ayanna corporation if the land is sold to an unrelated third party for $100,000. (Instead of distributed to either shareholder)and the $100,000 proceeds of the sale are distributed proportionately (pro-rata) to Kendra and Barbara. (ie. Eighty percent (80%) to kendra and twenty percent (20%) o Barbara)?

-$-0.

-$100,000

-$20,000

-$40,000