Jon owns 100 % of Jon, Inc (JI). JI is liquidated and Jon receives land 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.Jl has $3,000,000 of earnings and profits . As a result of the liquidation , JI must recognize A. No gain or loss B. $500,000 gain on land and $900,000 gain on building C. $200,000 gain on land and $900,000 gain on building D. $200,000 gain on the land and $800,000 gain on building