Jon owns 100 % of Jon, Inc (JI). JI is liquidated and Jon receives and with a FMV of $500,000 and a tax basis of $300,000 and a building with a fair market value of $1,000,000 and a tax basis of $200,000. The building is subject to a mortgage of $100,000 Jon's basis in Ji stock is $200,000. Ji has $3,000,000 of earnings and profits. As a result of the liquidation, Jon must recognize income of OA. $1,300,000 capital gain B. $1,400,000 dividend Income OC. SO income OD. 31,200,000 capital gain