It is now 2016. Mouse, Inc., a calendar year S corporation, is owned equally by four shareholders: Mickey, Minney, Topolino, and Topolina. The corporation owns investment land that was purchased for 345,000 four years ago. On September 6 of the current year, when the land is worth $510,000, it is distributed to Topolino. Assuming that Topolino's basis in his S corporation stock is $470,000 immediately before the distribution. What is Topolino's basis in the corporation's stock immediately after the distribution?

Select one:

a. $125,000

b. ($40,000)

c. $1,250

d. $0