2. Lake Inc., a C corporation, owns 85% of Howard Inc., another C Corporation. Assume Lake Inc.'s basis in Howard Inc. is $500,000, and Howard Inc.'s basis in its assets is $200,000 and Howard Inc.'s assets have a fair market value of $600,000. Assume that Lake Inc. liquidates Howard Inc. this year. What is Lake Inc.'s basis in the assets formerly owned by Howard Inc.? (10 points)