Warbler Corporation Distributes All of Its Property in a Complete

question 21

Multiple Choice

Warbler Corporation distributes all of its property in a complete liquidation.Kena,a shareholder,receives $7,000 cash and land having a fair market value of $120,000.Warbler had purchased the land three years ago for $105,000.Kena has a $22,000 basis in her Warbler stock.What is Kena's basis in the land received in the liquidation of Warbler?

• A)$0.
• B)$105,000.
• C)$120,000.
• D)$127,000.
• E)None of the above.