Leo Is a 50% Shareholder in Small Corporation, an S

Multiple Choice

Leo is a 50% shareholder in Small Corporation, an S Corporation from its incorporation.Leo receives a property distribution when his basis in his Small stock is $45,000.The property distributed has a fair market value of $45,000 and a basis to Small Corporation of $25,000.What is the gain recognized by Small Corporation as a result of the distribution and what is Leo's basis for the property he received?

A) 0 gain and $25,000 basis
B) 0 gain and $45,000 basis
C) $20,000 gain and $25,000 basis
D) $20,000 gain and $45,000 basis