Caesar Owns 100% of Roman Company and His Basis in Its

Caesar owns 100% of Roman Company and his basis in its stock is $35,000.He receives cash of $10,000 and property with FMV of $30,000 and basis of $50,000 in complete liquidation of his ownership interest.As a result of this transaction,which of the following statements is incorrect?

A) Caesar has a nontaxable return of capital of $35,000.
B) Roman Company records a loss of $20,000.
C) Caesar reports a capital gain of $5,000.
D) Caesar reports dividend income of $40,000.