Glenda is the sole shareholder of Condor Corporation. She sold her stock to Melissa on October 31 for $150,000. Glendas basis in Condor stock was $50,000 at the start of the year. Condor distributed land to Glenda immediately before the sale. Condors basis in the land was $20,000 (fair market value of $25,000). On December 31, Melissa received a $75,000 cash distribution from Condor. During the year, Condor has $20,000 of current E & P and its accumulated E & P balance on January 1 is $10,000. Which of the following statements is true?

Glenda recognizes a $110,000 gain on the sale of her stock. (Why is this correct?)

Glenda recognizes a $100,000 gain on the sale of her stock.

Melissa receives $5,000 of dividend income.

Glenda receives $20,000 of dividend income.

None of the above.