The stock in Rose Corporation is held equally by two sisters. One year before its liquidation, the shareholders transfer property (basis of $500,000, fair market value of $300,000) to Rose Corporation in return for stock. In a current year liquidation, Rose Corporation transfers the property (now worth $250,000) pro rata to the sisters. What amount of loss will Rose Corporation recognize on the distribution?

(Give an explanation for yout answer)

a.$0.

b.$250,000.

c.$200,000.

d.$50,000.

e. None of the above