A Corp has a sole shareholder, K. K transferred the following assets to A Corp in a qualifying 351 formation:

Basis FMV

Land 300,000 180,000

Inventory 20,000 20,000

Machinery 100,000 400,000

Eighteen months later, K decides to close down the business. A Corp distributes the following assets in complete liquidation of the corporation to K:

As Basis FMV

Land 300,000 160,000

Machinery 0 200,000

Calculate the gain/loss recognized by A Corp on the distribution, Ks basis in the assets received, and any gain/loss recognized by K on the distribution.