The Gross Estate of April, Decedent, Includes Stock in Brown

The gross estate of April, decedent, includes stock in Brown Corporation and Parrot Corporation valued at $700,000 and $2.3 million, respectively. April's adjusted gross estate is $7.5 million. At the time of her death in 2011, April owned 24% of the Brown stock and 40% of the Parrot stock. Immediate members of April's family own the remaining shares of both Brown and Parrot. Those individuals are also the sole beneficiaries of April's estate. Death taxes and funeral and administration expenses for April's estate are $700,000. April had a basis of $130,000 in the Brown stock and $290,000 in the Parrot stock. Brown Corporation (E & P of $900,000) distributed land worth $700,000 (basis of $650,000) to April's estate in redemption of all of the Brown stock. Which of the following is a correct statement regarding the tax consequences of this redemption?

A) The estate recognizes no gain (or loss) on the redemption.
B) The estate recognizes $700,000 of dividend income on the redemption.
C) Brown Corporation recognizes no gain (or loss) on the distribution of the land.
D) The estate has a basis of $650,000 in the land.
E) None of the above.