Moe and Curley, brothers, own all of the stock in Susquehanna Hat, Inc. Moe owns 60% and Curley 40%. Three years ago, they transferred real property (basis: $175,000, FMV: $160,000) to the corporation as a contribution to capital. This year they adopted a plan of complete liquidation pursuant to the land is to be distributed to them pro rata. Due to failing market conditions, the property had declined in value to $80,000. What amount of loss will Susquehanna recognize on the distribution of the property?

• 1.$0
• 2.$15,000
• 3.$80,000
• 4.$95,000
• 5.Noneoftheabove

I think the answer is 3 or 4