Problem 6-56 (LO. 4) Last year, Lory Corporation, a land development company, acquired land and construction equipment from its sole shareholder in a 351 transaction. At the time, the land had a basis of $790,000 and a fair market value of $650,000, and the equipment had a basis of $130,000 and a fair market value of $300,000. The assets were transferred to Lory Corporation for the purpose of developing the land and constructing a residential home community. However, the residential housing market suffered a steep decline in the current year, and as a result of financial difficulties, Lory Corporation was forced to sell its assets and liquidate. Pursuant to a plan of liquidation adopted during the year, Lory sold the land to an unrelated party for its current fair market value of $500,000 Lory Corporation has a oss of on the sale of the land. recognized nonrecognized