What Is Alexander's Net Gain or Loss on the Liquidation

Multiple Choice

What is Alexander's net gain or loss on the liquidation of his 100 percent interest in an S corporation if the corporation distributes the following three assets to him in exchange for his stock: Prior to any distributions, Alexander's basis in his S corporation interest was $160,000.

A) ($12,000)
B) ($22,000)
C) $10,000
D) $22,000