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: $\begin{array} { l l l } \underline{\text { Asset }} &\underline{ \text { FMV } } & \underline{\text { Adj. Basis }} \\\text { Inventary } & \$ 20,000 & \$ 13,000 \\\text { Machines } & \$ 50,000 & \$ 60,000 \\\text { Building } & \$ 100,000 & \$ 75,000\end{array}$ 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