MrQuick Sold Marketable Securities with a $112,900 Tax Basis to His

Mr.Quick sold marketable securities with a $112,900 tax basis to his 100% owned corporation for $95,000 cash.Which of the following statements is true?

A) If Mr.Quick can offer evidence that the FMV of the securities is $95,000,he can recognize his $17,900 realized loss.
B) If Mr.Quick and his corporation negotiated the terms of the sale at arm's length,Mr.Quick can recognize his $17,900 realized loss.
C) The corporation's tax basis in the securities is $112,900.
D) None of the above is true.

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