Jon, Ellyn and Rori each own 100 shares of JER Corporation. JER adopts a plan of complete liquidation. JER distributes $100,000 of cash to Jon; a capital asset with a fair market value of $100,000 and a tax basis $120,000 to Ellyn; inventory with a fair market value of $100,000 and tax basis of $70,000 to Rori. What gain and/or loss does JER recognize on these distributions ? O A. No gain or loss O B. capital loss $20,000 and ordinary income $30,000 O C. capital loss $20,000 O D. ordinary income $30,000