Malcolm Receives a Liquidating Distribution of Land with a Fair

Multiple Choice

Malcolm receives a liquidating distribution of land with a fair market value of $14,000 and a basis of $19,000 from Blithe Corporation,an S corporation.Malcolm's basis in the stock is $21,000.What must Malcolm and Blithe report as income (loss) from the property distribution?
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Malcolm Blithe

A) $-0- $-0-
B) $(2,000) $(5,000)
C) $(7,000) $-0-
D) $(7,000) $(5,000)