P, the parent corporation, owns 100% of both S and B. S owns land with a basis of $240 and FMV of $300. On January 1, 20x1, S sells the land to B for $300. On July 1, 20x3, when the land is worth $400, P sells 30% of S's stock to an unrelated corporation. What effect does the sale of S stock have on the 20x1 land sale?

A. B must recognize a $100 gain

B. No gain to P until B sells the land

C. No gain to S until B sells the land.

D. S must recognize a $60 gain