The stock of loon corporation is held as follows: 85% by duck corporation and 15% by gerald, an individual. loon corporation is liquidated in december of the current year, pursuant to a plan adopted earlier in the year. loon corporation distributes land with a basis of $350,000 and fair market value of $390,000 to gerald in liquidation of his stock interest. gerald had a basis of $200,000 in his loon stock. how much gain will loon corporation recognize in this liquidating distribution?

a. $0
b. $40,000
c. $190,000
d. $390,000

Juanita and sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore than it did when they were young. the water doesn't appear nearly as clear, and there seems to be less evidence of small water creatures living in the shallows. an afternoon at the local library convinces them that one major cause is the new factory nearby. after some discussion, they decide their next step should be identifying the cause of the changes identifying the problem picketing the guilty factory lobbying their elected representatives to complain about the problem talking to a local environmental group about solutions