On April 12, 2009, Crow Corporation acquired land in a transaction that qualified under Section 351 (ie. Section 351 Transfer). The land had an Adjusted Basis of $200,000 to the contributing shareholder and a Fair Market Value of $170,000. Crow Corporation adopted a plan of complete liquidation on October 3, 2010. On December 4, 2010, Crow Corporation distributes the land to Ali, a shareholder who owns twenty percent (20%) of the stock of Crow Corporation. The Fair Market Value of the land has declined to $130,000 on the date of the distribution to Ali. There was no business purpose for Crow Corporation acquiring the land on April 12, 2009. As a result of the distribution what amount of Loss may Crow Corporation recognize on the distribution of the land?

(a) $ 0.

(b) $ 70,000.

(c) $ 40,000.

(d) $ 130,000.