Robin Transferred Her 60 Percent Interest to Cardinal Company as Part

Robin transferred her 60 percent interest to Cardinal Company as part of a complete liquidation of the company. In the exchange, she received land with a fair market value of $995,000. Robin's basis in the Cardinal stock was $1,027,500. The land had a basis to Cardinal Company of $1,040,000. What amount of loss does Cardinal recognize in the exchange and what is Robin's basis in the land she receives? The distribution was non-pro rata to Robin, a related person.

A) $45,000 loss recognized by Cardinal and a basis in the land of $1,040,000 to Robin
B) $45,000 loss recognized by Cardinal and a basis in the land of $995,000 to Robin
C) No loss recognized by Cardinal and a basis in the land of $1,040,000 to Robin
D) No loss recognized by Cardinal and a basis in the land of $995,000 to Robin