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Paula receives a liquidating distribution from Pell Corporation. Paulas basis for her Pell stock is $10,000. In exchange for her stock, Paula receives real estate

Paula receives a liquidating distribution from Pell Corporation. Paulas basis for her Pell stock is $10,000. In exchange for her stock, Paula receives real estate with an $8,000 basis and a $15,000 fair market value that is subject to a $2,000 mortgage. What is Paulas basis in the real estate she received?

A. $13,000.

B. $8,000.

C. $15,000.

D. $10,000.

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