Red, Inc. owns only two assets, two parcels of land, when it adopts a plan of complete liquidation. It purchased both assets several years

ago. The assets are distributed to its shareholders as follows:

Shareholder

A$.$ Major

B$.$ Minor

What will Red recognize on the distribution of the property to A$.$ Major?

$$125,000$ loss

$$50,000$ loss

$$0$ gain or loss

$$75,000$ gain

None of the above.