Stone Corporation purchased all of the stock of Rock Corporation five years ago for $120,000. In November 2018, Rock is liquidated. Stone receives all of Rock's assets, which have a basis to Rock of $150,000 and a fair market value of $250,000. At the time of liquidation, Rock had earnings and profits of $100,000. What gain does Stone recognize as a result of the liquidation, and what is Stone's basis in the properties received in the liquidation?

a. gain $130,000 basis $250,000

b. gain $100,000 basis $250,000

c. gain $0 basis $150,000

d. gain $0 basis $120,000