Cronin Co. distributed $6,000 cash and equipment with a fair market value of $12,000 to Ginny, its sole shareholder. The corporation had an adjusted tax basis of $8,000 in the distributed equipment and an attached liability of $3,000 (Ginny assumes the liability). Cronin has current E\&P of $40,000 and no accumulated E\&P. What is Ginny's initial tax basis in the distributed equipment? Select one: A. $12,000 B. $0 C. $9,000 D. $5,000