Dove Corporation (E & P of $800,000) has 1,000 shares of stock outstanding. The shares are owned as follows: Julia, 600 shares; Maxine (Julia's sister), 300 shares; and Janine (Julia's daughter), 100 shares. Dove Corporation owns land (basis of $300,000, fair market value of $260,000) that it purchased as an investment seven years ago. Dove distributes the land to Julia in exchange for all of her shares in the corporation. Julia had a basis of $275,000 in the shares. What are the tax consequences for both Dove Corporation and Julia?

a. If the distribution is a qualifying stock redemption: Dove Corporation has a (recognized gain/ nonrecognized gain/ recognized loss/ nonrecognized loss) of $____________. Julia has a (recognized gain/ nonrecognized gain/ recognized loss/ nonrecognized loss) of $____________.

b. If the distribution is a liquidating distribution: Dove Corporation has a (recognized gain/ nonrecognized gain/ recognized loss/ nonrecognized loss) of $__________. Julia has a (recognized gain/ nonrecognized gain/ recognized loss/ nonrecognized loss) of $_____________. Her basis in the land is $_______________.