Three Years Ago,Loon Corporation Purchased 100% of the Stock of Pelican

Multiple Choice

Three years ago,Loon Corporation purchased 100% of the stock of Pelican Corporation for $950,000.Currently,Pelican Corporation has assets with a basis of $700,000 and a fair market value of $1.2 million.If Loon liquidates Pelican,what basis will Loon have in the assets it acquires from Pelican Corporation?

A) $0.
B) $700,000.
C) $950,000.
D) $1.2 million.
E) None of the above.