The stock in Toucan Corporation is held by Tom. Four years ago, in a 351 transaction, Tom transferred property (basis of $220,000, fair market value of $200,000) to Toucan Corporation as a contribution to capital. In the current year and pursuant to a complete liquidation of Toucan, the property is distributed to Tom. At the time of the distribution, the property had a fair market value of $40,000. What amount of loss will Toucan Corporation recognize on the distribution of the property?

a. $0

b. $20,000

c. $160,000

d. $180,000