To carry out a qualifying stock redemption, Turaco Corporation (E & P of $800,000) transfers land held for investment purposes to Aida, a shareholder. The land had a basis of $250,000, a fair market value of $400,000, and is subject to a $300,000 liability. Aida has a basis of $70,000 in the shares redeemed. Which of the following is a correct statement regarding the tax consequences of this redemption?

a. Aida will have $400,000 of dividend income.

b. Aida will have a $100,000 basis in the land.

c. Turaco Corporation will recognize a gain of $50,000.

d. Aida will recognize a gain of $30,000.

e. None of the above.