The stock of Qadams Corporation is held as follows: 85% by Duck Corporation and 15% by Gerald, an individual. Qadams Corporation is liquidated in December of the current year, pursuant to a plan adopted earlier in the year. Qadams Corporation distributes land with a basis of $350,000 and fair market value of $380,000 to Gerald in liquidation of his stock interest. Gerald had a basis of $200,000 in his Qadams stock. How much gain will Qadams Corporation recognize in this liquidating distribution?

Select one:

A. $30,000.

B. $40,000.

C. $190,000.

D. $390,000.

E. None of the above.