Ball Corporation Owns 80% of Net Corporation's Stock and Jack $$\begin{array} { | l | l | } \hline \text { Ball } & \text { Jack } \\\hline \$ 0 & \$ 0 \\\hline\end{array}$$

Ball Corporation owns 80% of Net Corporation's stock and Jack owns the remaining 20% of Net Corporation's stock. Ball's basis in the Net stock is $200,000 and Jack's basis in the Net stock is $100,000. Under a plan of complete liquidation, Ball Corporation receives property with an adjusted basis of $400,000 and an FMV of $800,000 and Jack receives property with an adjusted basis of $50,000 and an FMV of $200,000. Ball and Jack's recognized gains on the liquidation are:

A) $$\begin{array} { | l | l | } \hline \text { Ball } & \text { Jack } \\\hline \$ 0 & \$ 0 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Ball } & \text { Jack } \\\hline \$ 0 & \$ 100,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Ball } & \text { Jack } \\\hline \$ 200,000 & \$ 50,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { Ball } & \text { Jack } \\\hline \$ 600,000 & \$ 100,000 \\\hline\end{array}$$