Dexer Corporation Is Owned 70% by Amy and 30% by Brad

Dexer Corporation is owned 70% by Amy and 30% by Brad. Dexer Corporation owns Eagle Corporation stock with a $50,000 adjusted basis and a $30,000 FMV. The stock is not disqualified property. As part of a complete liquidation, the Eagle Corporation stock is distributed to Amy. Amy's basis in her Dexer stock is $40,000. Dexer Corporation will recognize

A) no loss.
B) a $20,000 loss.
C) a $10,000 loss.
D) none of the above

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