The stock of Loon Corporation is held as follows: 85% by Duck Corporation and 15% by Gerald, an individual, Loon Corporation is liquidated in December of the current year pursuant to a plan adopted earlier in the year. Loon Corporation distributes land with a basis of $350,000 and fair market value of $390,000 to Gerald in llquidation of his stock interest. Gerald had a basis of $200,000 in his Loon stock. How much gain will Loon Corporation recognize in this liquidating distribution? a. 540,000 b. 50 c. 5190,000 d. $390,000