Jane Receives a Nonliquidating Distribution of Land with a Fair $\begin{array}{llcc} \text { Jane } & \text { Strickland} \\\end{array}$

Short Answer

Jane receives a nonliquidating distribution of land with a fair market value of $30,000 and a basis of $18,000 from Strickland Corporation, an S corporation. Jane's basis in the stock is $46,000. What must Jane and Strickland report as income from the property distribution? $\begin{array}{llcc} \text { Jane } & \text { Strickland} \\\end{array}$
A) $\$-0- \quad \$-0-$
B) $\$ 12,000 \quad \$-0-$
C) $\$-0-\quad \$ 12,000$
D) $\$ 12,000 \quad \$ 12,000$