Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The

Dried Fruit Corp. stock is owned one$-$third by Raisin and two$-$thirds by Prune. All shareholders

are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his

shares was $$114,000$ and Prune's basis in her shares was $$38,000.$ During the current year,

Dried Fruit Corp. earned $$684,000$ of net income from operations. Raisin's share was $$228,000$;

Prune's share was $$456,000.$ On July $1$ st$,$ Dried Fruit Corp. distributed $$304,000$ to Raisin and

$$608,000$ to Prune. How much gain does Raisin recognize as a result of this transaction?

$$114,000$

$$38,000$

$$76,000$

$$0$