Multiple Choice $3\mathrm{.}33$ points

General Incrtia Corporation made a pro rata distribution of $$50,000$ to Tiara, incorporated in partial liquidation of the company on December $31,2$oxa Tura incorporated owns $500$ shares $(50$ percent$)$ of General Inertia. The distribution was in exchange for $250$ shares of Taras stock in the company. Nhter the partalliguidution Tura corbinued to own $50$ percent of the remainings stock in General linertia. At the time of the distribution the shares had a fair market value of $$200$ per share. Tharas alfinted tas bans in the shares was $$100$ per share. General inertiahad total ESP of $$800,000$ at the time of the distribution. What amount of dividend or capital gain does Tiara recoevire because of the transaction?

Tiara recognizes dividend income of $$50\mathrm{.}000.$

Tiara recognizes capital gain of $$25,000.$

Tiara recognizes capital gain of $$$0,000.$

Tiara does not recognize arry dividend income or capital gain.