4. Ball Corporation owns 90% of Net Corporation's stock and Jack owns the remaining 10% of Net Corporation's stock. Ball's basis in the Net stock is $300,000 and Jack's basis in the Net stock is $50,000. Under a plan of complete liquidation, Ball Corporation receives property with an adjusted basis of $300,000 and an FMV of $700,000 and Jack receives property with an adjusted basis of $40,000 and an FMV of $150,000 and subject to a $20,000 mortgage, which is assumed by Jack.

a) What is the amount of Ball Corporations gain or loss on the distribution? And what is the basis of property received by Ball Corporation?

b) What is the amount of Jacks gain or loss on the distribution? And what is the basis of property received by Jack?

c) What is the amount of Net Corporations gain or loss on the distribution?