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Glenda is the sole shareholder of Condor Corporation. She sold her stock to Melissa on October 31 for $150,000. Glenda's basis in Condor stock was $50,000 at the start of the year. Condor distributed land to Glenda immediately before the sale. Condor's basis in the land was $20,000 (fair market value of $25,000). On December 31, Melissa received a $75,000 cash distribution from Condor. During the year, Condor has $20,000 of current E & P and its accumulated E & P balance on January 1 is $10,000. Which statement is true?

a) Glenda recognizes a $110,000 gain on the sale of her stock.

b) Glenda recognizes a $100,000 gain on the sale of her stock.

c) Melissa receives $5,000 of dividend income.

d) Glenda receives $20,000 of dividend income.

e) None of the above

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