The stock in Rose Corporation is held equally by two unrelated shareholders, Tom and Jerry. One year before its liquidation, in a 351 tax-free exchange, 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 $350,000) pro rata to the shareholders. Rose never used the land for any business purpose during the time it was owned by the corporation. What amount of gain or loss will Rose Corporation recognize on the distribution?

Please show work.

a. $0.

b. ($150,000).

c. ($200,000).

d. $50,000 gain.