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Becker CPA Review $6-5$

Sky Corp. was a wholly$-$owned subsidiary of Jet Corp. Both corporations were domestic C corporations. Jet received a liquidating distribution of property in cancellation of its Sky stock when Jet's tax basis in Sky stock was $$100,000.$ The distributed property had an adjusted basis of $$135,000$ and a fair market value of $$250,000.$ What amount of taxable gain did Jet, the parent corporation, recognize on the receipt of the property?

a$.$ $$250,000$

b$.$ $$150,000$

c$.$ $$35,000$

d$.$ $$0$