Charla Corporation is owned eighty percent ( 80%) by Jeanette and twenty percent (20%) by Victoria who are unrelated to each other. Pursuant to a Complete Liquidation, Charla Corporation distributed Land that had a Fair Market Value on the date of distribution of $100,000 and a basis to Charla Corporation of $600,000. The Land was acquired by Charla Corporation in a Section 351 Transfer two (2) years ago from Victoria when its fair market value was $300,000. (Assume that there was no business purpose for the transfer). Pursuant to the Complete Liquidation, the Land is distributed proportionately (pro-rata) to Jeanette and Victoria (ie. eighty percent ( 80% ) to Jeanette and twenty percent (20\%) to Victoria). The Recognized Loss to Charla Corporation is: \$ 0 - $100,000. \$ 40,000. $120,000