Abbey owns 100% of the stock of Target Corporation. Her adjusted basis in her Target stock is equal to $850,000. Target's assets are valued at $2,200,000 and have an adjusted basis in Target's hands of $1,000,000. Target also has $450,000 of outstanding liabilities. Pursuant to a formal plan, Target transfers its assets to Acquiring Corporation a publicly traded company in exchange for $1,750,000 of Acquiring voting stock and Acquiring's agreement to assume the outstanding $450,000 of liabilities. The Acquiring Corporation stock represents less than 0.1 percent of its outstanding stock. Immediately after the transfer of its assets for the stock and the assumption of liabilities, and pursuant to the plan, Target Corporation is liquidated and the Acquiring Corporation stock is distributed to Abbey in the liquidation. What are the tax consequences of the above on Target Corporation, Acquiring Corporation, Abbey and Acquiring Corporation's shareholders? Abbey owns 100% of the stock of Target Corporation. Her adjusted basis in her Target stock is equal to $850,000. Target's assets are valued at $2,200,000 and have an adjusted basis in Target's hands of $1,000,000. Target also has $350,000 of outstanding liabilities. Pursuant to a formal plan, Target transfers its assets to Acquiring Corporation a publicly traded company in exchange for $1,750,000 of Acquiring voting stock, $100,000 of cash and Acquiring's agreement to assume the outstanding $350,000 of liabilities. The Acquiring Corporation stock represents less than 0.1 percent of its outstanding stock. Immediately after the transfer of its assets for the stock and the assumption of liabilities, and pursuant to the plan, Target Corporation is liquidated and the Acquiring Corporation stock is distributed to Abbey in the liquidation. What are the tax consequences of the above on Target Corporation, Acquiring Corporation, Abbey and Acquiring Corporation's shareholders