Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisins basis in his shares was $57,000 and Prunes basis in her shares was $19,000. During the current year, Dried Fruit Corp. earned $342,000 of net income from operations. Raisins share was $114,000; Prunes share was $228,000. On December 31st, Dried Fruit Corp. distributed Grapeacre (real property) having a fair market value of $114,000, and a basis of $76,000, to Raisin and Plumacre (real property) having a fair market value of $228,000 and a basis of $209,000, to Prune. How much gain does Raisin recognize as a result of this transaction?

$38,000

$57,000

$19,000

$0