Robot Corporation Is Liquidated, with Marty Receiving Property Having an Adjusted

Multiple Choice

Robot Corporation is liquidated, with Marty receiving property having an adjusted basis of $60,000 and an FMV of $90,000. The property is subject to an $80,000 mortgage, which Marty assumes. Marty's basis in the Robot stock surrendered is $50,000. Marty must recognize

A) a $40,000 loss.
B) no gain or loss.
C) a $60,000 gain.
D) none of the above.