NOT SURE WHY A IS NOT THE CORRECT ANSWER PLEASE ADVISE

Pecan Corporation distributes land to a noncorporate shareholder. Explain how the following items are determined: (Click the icon to view the items.) How would your answers change if the distribution were made to a corporate shareholder? a. The artiount of the distribution is O A. its FMV. The distribution amount is the FMV of all property received. If the shareholder assumes or acquires a liability in connection with the distribution, it does not reduce the amount of the distribution. OB. the basis of all property received. If the shareholder assumes or acquires a liability in connection with the distribution, it may reduce the amount of the distribution to zero or below. OC. its FMV. The distribution amount is the FMV of all property received. If the shareholder assumes or acquires a liability in connection with the distribution, it reduces the amount of the distribution (but not below zero). OD. the basis of all property received. If the shareholder assumes or acquires a liability in connection with the distribution, it reduces the amount of the distribution (but not below zero). 0 More Info a. The amount of the distribution b. The amount of the dividend c. The shareholder's basis in the land d. When the holding period for the land begins. Print Done