In the Current Year,Warbler Corporation (E & P of $250,000)made

In the current year,Warbler Corporation (E & P of $250,000) made the following property distributions to its shareholders (all corporations) : $$\begin{array} { l l l } &\text {Adjuted } & \text {Fair Market } \\&\underline{\text {Baris }} & \underline{\text {Value }} \\\text{Pink Corporation stock (held for investment) }&\$ 150,000 & \$ 120,000 \\\text{Non-LIFO inventory}&80,000 & 110,000\end{array}$$ Warbler Corporation is not a member of a controlled group.As a result of the distribution:

A) The shareholders have dividend income of $200,000.
B) The shareholders have dividend income of $260,000.
C) Warbler has a recognized gain of $30,000 and a recognized loss of $30,000.
D) Warbler has no recognized gain or loss.
E) None of the above.