Babb Corporation owns 80 percent of Atley Corporation's stock and Linda owns the remaining 20 percent of Atley's stock. Babb Corporation's basis for its Atley stock is $300,000 and Linda's Atley stock has a basis of $80,000. Pursuant to a plan of complete liquidation of Atley Corporation, Babb Corporation receives property with a $400,000 adjusted basis and a $480,000 fair market value, and Linda receives property with a $130,000 adjusted basis and a $120,000 fair market value. The bases of the properties to Babb Corporation and Linda are:
A. Babb: $480,000; Linda: $120,000.
B. Babb: $400,000; Linda: $130,000.
C. Babb: $300,000; Linda: $80,000.
D. Babb: $400,000; Linda: $120,000.