Mann Corp. owns 80 percent of Tomlin Corp.’s stock and Vicky owns the remaining 20 percent of Tomlin’s stock. Mann Corp.'s basis for its Tomlin stock is $405,000 and Vicky’s Tomlin stock has a basis of $65,000.

Pursuant to a plan of complete liquidation of Tomlin Corp., Mann Corp. receives property with a $550,000 adjusted basis and a $680,000 fair market value, and Vicky receives property with a $190,000 adjusted basis and a $170,000 fair market value.

a. What amount ofg ain or loss is recognized by Tomlin Corp. as a result of the liquidating distributions?

b. What amount of gain or loss is recognized by Mann and Vicky as a result of the liquidating distributions?

c. What tax basis will Mann Corp. and Vicky have for the property they receive in the liquidation?