Gary and Laura decided to liquidate their jointly owned corporation, Amelia, Inc. After liquidating its remaining inventory and paying off its remaining liabilities, Amelia had the following tax accounting balance sheet.

	Adjusted basis		FMV		Appreciation
Cash	$100,000		$100,000
Building	150,000		200,000		50,000
Land	50,000		120,000		70,000
Total	$300,000		$420,000		$120,000

Under the terms of the agreement, Gary will receive the $100,000 cash in exchange for his interest in Amelia. Gary's tax basis in his Amelia stock is $30,000. Laura will receive the building and land in exchange for her interest in Amelia. Laura's tax basis in her Amelia stock is $60,000.