Pursuant to a Complete Liquidation, Oriole Corporation Distributes to Its

Multiple Choice

Pursuant to a complete liquidation, Oriole Corporation distributes to its shareholders land with a basis of $350,000 and a fair market value of $800,000.The land is subject to a liability of $920,000.What is Oriole's recognized gain or loss on the distribution?

A) $0.
B) $120,000 loss.
C) $120,000 gain.
D) $450,000 gain.
E) None of the above.