Finch Corporation Distributes Property (Basis of $225,000, Fair Market Value

Multiple Choice

Finch Corporation distributes property (basis of $225,000, fair market value of $300,000) to a shareholder in a distribution that is a qualifying stock redemption. The property is subject to a liability of $160,000, which the shareholder assumes. The basis of the property to the shareholder is:

A) $0.
B) $140,000.
C) $225,000.
D) $300,000.
E) None of the above.