5. P owns 100% of S. P is also a creditor of S. P's basis in S stock is 100.

(a) S has assets with an adjusted basis of 200 and a FMV of 100. S's liability to P is for 200. S adopts a plan of liquidation and liquidates distributing the land to P. What are the consequences to the parties?

(b) Suppose instead that the FMV of the assets is 350. Would this change your answer?