Hillsboro Corporation is liquidated, with Melinda receiving property having an adjusted basis of $60,000 and an FMV of $90,000. The property is subject to an $80,000 mortgage, which Melinda assumes. Melinda's basis in the Hillsboro Corporation stock surrendered is $50,000. Melinda must recognize

Select one:

a.no gain or loss.

b.a $40,000 loss.

c.none of the above.

d.a $60,000 gain.