Question - Purple Corporation has one shareholder, Joshua. One year ago, Joshua transferred land to Purple in a § 351 exchange. Joshua transferred land (basis of $600,000, fair market value of $850,000). In the current year, Purple Corporation adopts a plan of liquidation and distributes the land to Joshua. The land had decreased in value to $310,000. Purple never used the land for any business purpose during the time it was owned by the corporation. What amount of loss can Purple Corporation recognize on the distribution of the land?
a. $0
b. $140,000
c. $150,000
d. $290,000