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Magenta Corporation acquired land in a sect 351 exchange one year ago. The land had a basis $320,000 and a fair market value of $350,000 on the date of the transfer. Magenta Corporation two shareholders, Mark (70%) and Megan (30%), who are brother and sister. Magenta adopts a plan of liquidation in the current year. On this date, the land has decreased value to $250,000. Magenta Corporation sells the land for $250,000 and distributes the pro rata to Mark and Megan. What amount of loss may Magenta Corporation recognize the sale of the land? a. $0 b. $21,000 c. $30,000 d. $70,000 e. None of the above Purple Corporation has two equal shareholders, Joshua and Ellie, who are father and daughter. One year ago, the two shareholders transferred properties to Purple in a sect 351 exchange. Joshua transferred land (basis of $600,000, fair market value of $450,000) and securities (basis of $70,000, fair market value of $250,000), while Ellie transferred equipment (basis of $420,000, fair market value of $700,000). In the current year, Purple Corporation adopts a plan of liquidation, sells all of its assets, and distributes the proceeds pro rata to Joshua and Ellie. The only loss realized upon disposition of the properties was with respect to the land that had decreased in value to $310,000 and was sold for this amount. Purple never used the land for any business purpose during the time it was owned by the corporation. What amount of loss can Purple Corporation recognize on the sale of the land? a. $0 b. $140,000 c. $150,000 d. $290,000 e. None of the above