Pursuant to a Complete Liquidation, Rust Corporation Distributes to Its

Multiple Choice

Pursuant to a complete liquidation, Rust Corporation distributes to its shareholders land with a basis of $150,000 and a fair market value of $400,000. The land is subject to a liability of $300,000. What is Rust's recognized gain on the distribution?

A) $0.
B) $100,000.
C) $150,000.
D) $250,000.
E) None of these.