For the following questions, provide an explanation of the correct answer and why the other choices are incorrect.

Krol Corp. distributed marketable securities in the redemption of its stock in complete liquidation. On the date of distribution, these securities had a basis of $100,000 and a fair market value of $150,000. What gain does Krol have as a result of the distribution?

a) $0

b) $50,000 capital gain

c) $50,000 Section 1231 gain

d) $50,000 ordinary gain