The Stock in Star Corporation Is Held Equally by Two

The stock in Star Corporation is held equally by two brothers.One year before its liquidation, the shareholders transfer property (basis of $650,000, fair market value of $400,000) to Star Corporation in return for stock.In a current year liquidation, Star Corporation transfers the property (now worth $350,000) pro rata to the brothers.What amount of loss will Star Corporation recognize on the distribution?

A) $0.
B) $250,000.
C) $300,000.
D) $50,000.
E) None of the above.