Katsu Corp. distributes property to its shareholders as part of a complete liquidation. The fair market value of the property is $500,000, Katsu’s adjusted basis in the property is $150,000, and the property is subject to a liability of $200,000. What amount of gain will Katsu recognize as a result of the transaction?
a. $150,000
b. $550,000
c. $300,000
d. $350,000