Snipe Corporation,a Calendar Year Taxpayer,has Total E & P of $800,000.During

Snipe Corporation,a calendar year taxpayer,has total E & P of $800,000.During the current year,Snipe makes property distributions to Tracy (the sole shareholder) as follows:
Adjusted Basis
Fair Market Value
Stock investment
$100,000
$ 90,000
Land
270,000
300,000
​
As a result of these distributions:

A) Snipe Corporation must recognize a gain of $30,000 and no recognized loss.
B) Snipe Corporation must recognize a gain of $30,000 and recognize a loss of $10,000.
C) Snipe Corporation recognizes neither gain nor loss.
D) Tracy will have a basis of $100,000 in the stock investment and $270,000 in the land.
E) None of the above.