Under a Plan of Complete Liquidation, Key Corporation Distributes Land

Under a plan of complete liquidation, Key Corporation distributes land (not a disqualified property) 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.

A) $$\begin{array} { | l | l | } \hline \text { Basis } & \text { RecognizedGain/Loss } \\\hline \$ 300,000 & \$ 110,000 \text { loss } \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Basis } & \text { RecognizedGain/Loss } \\\hline \$ 250,000 & \$ 110,000 \text { loss } \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Basis } & \text { RecognizedGain/Loss } \\\hline \$ 250,000 & \$ 0 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { Basis } & \text { RecognizedGain/Loss } \\\hline \$ 300,000 & \$ 0 \\\hline\end{array}$$

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