1) Mr. L owned 100 shares of stock in Willow Corporation. During the current year, Willow completely liquidated and distributed the following to L:
Cash $ 25,000
Land: Fair Market Value 450,000
Subject to a Mortgage 200,000
Mr. L’s adjusted basis in Willow’s stock was $50,000 and he will assume the mortgage on the land. What is L’s basis in the land received?
a. $50,000
b. $75,000
c. $250,000
d. $450,000