Question $9$: 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 $$48,000$ and Prune's basis in her shares was $$16,000.$ During the

current year, Dried Fruit Corp. earned $$288,000$ of net income from operations. Raisin's

share was $$96,000$; Prune's share was $$192,000.$ On December $31$ st$,$ Dried Fruit Corp.

distributed Grapeacre $($real property$)$ having a fair market value of $$96,000,$ and a basis of

$$64,000,$ to Raisin and Plumacre $($real property$)$ having a fair market value of $$192,000$ and a

basis of $$176,000,$ to Prune. How much gain does Raisin recognize as a result of this

transaction?

$$48,000$

$$16,000$

$$32,000$

$$0$