The Stock in Lark Corporation Is Owned Equally by Olaf

Multiple Choice

The stock in Lark Corporation is owned equally by Olaf and his son Pete.In a liquidation of the corporation,Lark Corporation distributes to Olaf land that it had purchased three years ago for $550,000.The property has a fair market value on the date of distribution of $400,000.Later,Olaf sells the land for $420,000.What loss will Lark Corporation recognize with respect to the distribution of the land?

A) $0.
B) $20,000.
C) $130,000.
D) $150,000.
E) None of the above.