Chanyoung Corporation sells property with a basis of $10,000 to its sole shareholder for $8,000. Chanyoung Corporation (1) $2,000 of loss and Chanyoungs E&P is (2) by $2,000 for the year of sale. (20 Points)

A) (1) can deduct (2) increased

B) (1) can deduct (2) reduced

C) (1) cannot deduct (2) reduced

D) (1) cannot deduct (2) increased