Malcolm Receives a Liquidating Distribution of Land with a Fair $\quad$

Short Answer

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?
$\quad$ Malcolm $\quad$ Blithe
a. $\$ 0 -$$\quad$$\quad$ $\$ 0 -$
b. $\$ ( 2,000 ) \quad \$ ( 5,000 )$
c. $\$ ( 7,000 ) \quad \$ - 0 -$
d. $\$ ( 7,000 ) \quad \$ ( 5,000 )$