The Adjusted Gross Estate of Keith,decedent,is $5 Million

The adjusted gross estate of Keith,decedent,is $5 million.Included in the gross estate is stock in Gold Corporation (E & P of $900,000) ,a closely held corporation,valued at $1.8 million as of the date of Keith's death in 2009.Keith had acquired the stock twelve years ago at a cost of $300,000.Death taxes and funeral and administration expenses for Keith's estate are $900,000.Gold Corporation redeems one-half of the stock from Keith's estate in a § 303 redemption to pay death taxes using property with a fair market value of $900,000 (adjusted basis of $550,000) .Which of the following is a correct statement regarding the tax consequences of this redemption?

A) The estate will have a basis of $900,000 in the property received from Gold Corporation in redemption of the estate's stock.
B) Gold Corporation will recognize no gain on the distribution of the property to Keith's estate.
C) Gold Corporation will not reduce its E & P as a result of the distribution of the property to Keith's estate.
D) The estate will recognize a $750,000 long-term capital gain on the redemption.
E) None of the above.