Dusty Corporation Owns 90% of Palace Corporation's Stock and Susan $$\begin{array} { | l | l | } \hline \text { Dusty } & \text { Susan } \\\hline \$ 300,000 & \$ 20,000 \\\hline\end{array}$$

Dusty Corporation owns 90% of Palace Corporation's stock and Susan owns the remaining stock.Dusty Corporation's stock basis is $300,000 and Susan's stock basis is $20,000.Under a plan of complete liquidation,Dusty Corporation receives property with a $400,000 adjusted basis and a $540,000 FMV and Susan receives property with a $20,000 adjusted basis and a $60,000 FMV.The bases of the properties are:

A) $$\begin{array} { | l | l | } \hline \text { Dusty } & \text { Susan } \\\hline \$ 300,000 & \$ 20,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Dusty } & \text { Susan } \\\hline \$ 400,000 & \$ 20,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Dusty } & \text { Susan } \\\hline \$ 400,000 & \$ 60,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { Dusty } & \text { Susan } \\\hline \$ 540,000 & \$ 60,000 \\\hline\end{array}$$