Under a plan of complete liquidation, Key Corporation (a C corporation) distributes land with an adjusted basis of $410,000 and an FMV of $300,000 for all Sharon's stock. Sharon's basis in her 5% interest in the Key stock is $250,000. Find Sharon's basis in the land and Key Corporation's recognized gain or loss.

Select one:

a.

Basis Recognized Gain/Loss

$300,000 $110,000 loss

b.

Basis Recognized Gain/Loss

$250,000 $110,000 loss

c.

Basis Recognized Gain/Loss

$300,000 $0

d.

Basis Recognized Gain/Loss

$250,000 $0