During 2013,Track Corporation distributes property to Cindy as part of a complete liquidation.Property included in the distribution is $30,000 in cash,land with a $40,000 adjusted basis and a $60,000 FMV,and a copyright without an ascertainable FMV and having a zero basis.The first payment to Cindy of $8,000 for use of the copyrighted property occurs in 2014.Cindy has a basis in the Track stock of $95,000 immediately preceding the liquidation.The minimum amount of gain that Cindy must recognize is a

Question

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B)No gain is recognized since the copyright does not have an ascertainable FMV and Cindy can apparently rely on the open transaction doctrine to determine her gain or loss.Cindy has a $5,000 [($30,000 + $60,000)- $95,000] unrecovered basis immediately after the liquidation.The receipt of the first payment of $8,000 results in a $3,000 ($8,000 - $5,000)gain being recognized in the following year.

During 2013,Track Corporation Distributes Property to Cindy as Part of a Complete