Katarina Transferred Her 10 Percent Interest to Spartan Corporation as Part

Multiple Choice

Katarina transferred her 10 percent interest to Spartan Corporation as part of a complete liquidation of the company.In the exchange she received land with a fair market value of $200,000.Katarina's basis in the Spartan stock was $100,000.The land had a basis to Spartan Company of $50,000.What amount of gain does Spartan recognize in the exchange and what is Katarina's basis in the land she receives?

A) $100,000 gain recognized by Spartan and a basis in the land of $200,000.
B) $150,000 gain recognized by Spartan and a basis in the land of $200,000.
C) No gain recognized by Spartan and a basis in the land of $100,000.
D) No gain recognized by Spartan and a basis in the land of $50,000.