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

In the current year, Warbler Corporation (E & P of $250,000) made the following property distributions to its shareholders (all corporations) : $$\begin{array} { l r r } & \text { Adjusted Basis } & \frac { \text { Fair Market } } { \text { Value } } \\\text { Fink Corporation stock (held for investment) } & \$ 150,000 & \$ 120,000 \\\text { Non-LIFO inventory } & 80,000 & 110,000\end{array}$$ ? 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.