Penguin Corporation Purchased Bonds (Basis of $85,000)of Its 100% Owned

Penguin Corporation purchased bonds (basis of $85,000) of its 100% owned subsidiary,Finch Corporation,at a discount.Pursuant to a § 332 liquidation and in satisfaction of the indebtedness,Finch distributes land worth $100,000 (basis of $75,000) to Penguin.Which of the following statements is correct with respect to the distribution of land?

A) Neither Finch nor Penguin recognize gain.
B) Finch recognizes no gain and Penguin recognizes a gain of $15,000.
C) Finch recognizes a gain of $25,000 and Penguin recognizes no gain.
D) Finch recognizes a gain of $25,000 and Penguin recognizes a gain of $15,000.
E) None of the above.