In the Current Year, Dove Corporation (E & P of $1

Multiple Choice

In the current year, Dove Corporation (E & P of $1 million) distributes all of its property in a complete liquidation. Alexandra, a shareholder, receives land having a fair market value of $200,000. Dove Corporation had purchased the land as an investment three years ago for $125,000, and the land was distributed subject to a $100,000 liability. Alexandra took the land subject to the $100,000 liability. What is her basis in the land?

A) $0
B) $100,000
C) $125,000
D) $200,000
E) None of these