Parent , Inc owns 95 % % of Sub Inc . Parent's basis in Sub stock is $ 900,000 . Eva owns 5 % of Sub stock . Her basis in Sub stock is $40,000 . In a liquidating distribution , Parent receives cash of $500,000 and a capital asset with a fair market value $450,000 .Sub's basis in the capital asset is $250,000. Eva receives a capital asset with a fair market value of $50,000 and a tax basis of $20,000. What gain or loss must Sub recognize as a result of this liquidation ?

A.

$30,000

B.

$200,000

C.

$230,000

D.

$0