The Stock in Rhea Corporation Is Owned by Jennifer (80%)

The stock in Rhea Corporation is owned by Jennifer (80%) and Lucy (20%) , mother and daughter. In a liquidation of the corporation in the current year, Rhea distributes land that it purchased two years ago for $675,000 to Lucy. The property has a fair market value on the date of distribution of $450,000. One year later, Lucy sells the land for $400,000. What loss, if any, will Rhea Corporation recognize with respect to the distribution of land?

A) $0
B) $45,000
C) $225,000
D) $275,000
E) None of the above