Auto Supplies Inc. has earnings and profits of \(\$ 200,000\) and a stock portfolio. It transfers appreciated stock worth \(\$ 150,000\) with a basis of \(\$ 80,000\) to a newly created corporation, Peak Enterprises Inc., for 100 percent of Peak's stock. Auto Supplies distributes the Peak stock equally to its three shareholders who promptly liquidate Peak. What are the tax consequences of the above if the stock portfolio is seven years old?