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5 . Orange Corporation has a wholly owned subsidiary, Green Corporation. Upon liquidation of Green pursuant to 3 3 2 , Orange receives Green s

5 .

Orange Corporation has a wholly owned subsidiary, Green Corporation. Upon liquidation of Green pursuant to

332,

Orange receives Green

s only asset, a parcel of land worth $

400, 000 .

Green Corporation had a basis of $

320, 000

in the land.

.

What are the tax consequences of this land transfer to Green Corporation?

.

What are the tax consequences to Orange Corporation?

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