L Corporation's only assets are land and building.Their combined original cost is $1 million, basis is $600,000, and current fair market value is $1.2 million.L elected the straight-line method of depreciation.L distributes the land and building to its sole shareholder in complete liquidation.The amount of income that L must report is
A)$0
B)$80,000
C)$400,000
D)$600,000

Question

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The Answer of L Corporation's only assets are land and building.Their combined original cost is $1 million, basis is $600,000, and current fair market value is $1.2 million.L elected the straight-line method of depreciation.L distributes the land and building to its sole shareholder in complete liquidation.The amount of income that L must report is
A)$0
B)$80,000
C)$400,000
D)$600,000

L Corporation's Only Assets Are Land and Building