The stock in Lark Corporation is owned equally by Olaf and his son Pete. In a liquidation of the corporation, Lark Corporation distributes to Olaf land that it had purchased 3 years previously for $550,000. The property has a fair market value on the date of distribution of $400,000. Later, Olaf sells the land for $420,000. Which loss will Lark Corporation recognize with respect to the distribution of the land?
e) None of the above