Close Corp. distributed cash and a parcel of land in a nonliquidating distribution to its sole shareholder. The following facts apply to this distribution:

Item .......................................... Amount
Cash ......................................... $50,000
Land
Fair market value .................. 30,000
Adjusted basis ....................... 40,000

Based on these facts, what amount of gain or loss should be recognized by Close Corp. as a result of this distribution?

a. $60,000 loss

b. No gain or loss should be recognized

c. $10,000 loss

d. $40,000 gain