Jon owns 100 % of Jon, Inc (JI). Jl 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 Jl stock is $200,000. Jl has $3,000,000 of eamings and profits. As a result of the liquidation, Jon must recognize income of OA $1,400,000 dividend Income OB. $1,300,000 capital gain OC. $0 Income OD. $1,200,000 capital gain