Copper Corporation (E & P of $1.2 million) distributes land (basis of $410,000, fair market value of $650,000) to Lauren, a shareholder, to carry out a qualifying stock redemption. Lauren had a basis of $90,000 in the shares redeemed. Which of the following is an incorrect statement regarding the redemption?

a.If the land is distributed subject to a $700,000 liability, Copper Corporation will recognize a gain of $290,000.

b.If the land is distributed subject to a $500,000 liability, Copper Corporation will recognize a gain of $240,000.

c.If the land is distributed subject to a $500,000 liability, Lauren will recognize a gain of $60,000.

d.If the land is distributed subject to a $500,000 liability, Lauren will have a basis in the land of $650,000.

e.None of these choices are correct.