Fraser Corp., a 75 percent owned subsidiary

of McCoy Corp., made a pro rata

distribution of a parcel of land that had been

used in its business in redemption of its

stock in a complete liquidation. The parcel

of land had a basis of $300,000 and a fair

market value of $410,000. What amount

and character of gain (if any) must be

recognized by Fraser Corp. as a result of the

distribution?