4. Wyld Corporation distributes to its shareholder Elizabeth (an individual) a piece of land with FMV $1,000,000. Wyld purchased the land ten years ago for $525,000. Wylds current E&P is $300,000 and its accumulated E&P is $80,000. Elizabeths stock basis is $250,000. Elizabeth owns 85 shares (85%) of Wyld Corporation. The remaining 15 shares (15%) are owned by an unrelated party. (6.5 Points)

a. What are the tax consequences to Wyld Corp and Elizabeth if this is a nonliquidating distribution?

b. What are the tax consequences to Wyld Corp and Elizabeth if this is a liquidating distribution instead?

c. What are the tax consequences to Wyld Corp and Elizabeth if this is a stock redemption instead and in exchange for the land Wyld Corp redeems 50 of Elizabeths shares?

d. If you were advising Wyld Corp and Elizabeth on scenarios a-c listed above, which scenario would you advise them to proceed with and why?