S1 owns 80% of X Corp. stock. S2 owns 20%. They are not related. X Corp. distributes the following assets in complete liquidation. They were not acquired in a Section 351 transaction or as a contribution to capital.

Basis FMV

Cash $600,000 $600,000

Equipment 150,000 200,000

Building 400,000 200,000

If the cash and equipment are distributed to S1, and the building is distributed to S2:

a.	X Corp. recognizes the gain of $50,000 but still cant recognize the loss of $200,000	c.	X Corp. cannot recognize any gain or loss
b.	X Corp. recognizes the gain of $50,000 and now can recognize the loss of $200,000	d.	None of the above