Individual Y owns 55% of Beta Corporation. Five years ago, Y contributed property with an adjusted bashs of $20,000 and a fair market value of 8,000 to Beta in a transaction qualifying under Sec351. In the current year, Beta adopted a plan of complete liquidation and distributed this same property to Y. At this time, the property had an adjusted basis of $18,000 and a fair market value of $5,000. How much loss will Beta recognize on the distribution?

A) $0

B) $3,000

C) $12,000

D) $13,000

Individual Y owns 55% of Beta Corporation. Five years ago, Y contributed property with an adjusted basis of $20,000 and a fair market value of $8,000 to Beta in a transaction qualifying under Sec. 351. In the current year, Beta adopted a plan of complete liquidation and distributed this same property to Y. At this time, the property had an adjusted basis of $18,000 and a fair market value of $5,000. How much loss will Beta recognize on the distribution? $0 $3,000 $12,000 $13,000