Topper Corporation Makes a Liquidating Distribution of Land to Its

Multiple Choice

Topper Corporation makes a liquidating distribution of land to its sole shareholder Tonya.Topper purchased the land several years ago for $150,000,and the land was recently appraised at $120,000 of value.Tonya purchased her stock three years ago for $65,000.What is the amount of gains or losses recognized by Topper Corporation and Tonya?

A) $$\begin{array} { | l | l | } \hline \text { Topper Corporation } & \text { Tonya } \\\hline \text { \$0 recognized } & \text { \$0 recognized } \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Topper Corporation } & \text { Tonya } \\\hline \$ 0 \text { recognized } & \$ 25,000 \text { gain recognized } \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Topper Corporation } & \text { Tonya } \\\hline \$ 30,000 \text { loss recognized } & \$ 0 \text { recognized } \\\hline\end{array}$$
D) $$\begin{array} {| l | l | } \hline \text { Topper Corporation } & \text { Tonya } \\\hline \$ 30,000 \text { loss recognized } & \$ 55,000 \text { gain recognized } \\\hline\end{array}$$