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Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $520,000. The corporation's basis in the Tea Company stock was $417,500. The land had a basis to Tea Company of \$622,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice $102,500 gain recognized and a basis in the land of $520,000 No gain recognized and a basis in the land of $622,500 $102,500 gain recognized and a basis in the land of $622,500 No gain recognized and a basis in the land of $205,000 Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange, Packard received land with a fair market value of $345,000. Packard's basis in the State stock was $817,500. The land had a basis to State Company of $592,500. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives? Multiple Choice $247,500 loss recognized by State and a basis in the land of $592,500 to Packard $247,500 loss recognized by State and a basis in the land of $345,000 to Packard No loss recognized by State and a basis in the land of $345,000 to Packard No loss recognized by State and a basis in the land of $592,500 to Packard