Problem 20-27 (LO. 1) Last year a shareholder transferred land (basis of $650,000, fair market value of $575,000) to Roadrunner Corporation in a 351 transaction. This was the only property transferred to Roadrunner at that time. During the current year, Roadrunner Corporation adopted a plan of liquidation and distributed the land to Rhonda, a 15% shareholder. On the date of the distribution, the land had a fair market value of $400,000. Roadrunner Corporation never used the land for business purposes during the time it owned the property. What amount of loss may Roadrunner recognize on the distribution of the land? In determining the loss, the basis step-down rules will apply and the related-party loss limitation will not x apply. Roadrunner Corporation has a recognized a loss of $ on the distribution of the land. Chech My Work SA Under 5 336(a), a corporation recognizes gain or loss on the distribution of property its fair market value. However, there are four exceptions to the general rule of gain ES