Gordon Corporation is owned 80% by Zyden Corporation and 20% by Randy Grey, a Gordon employee. A pre-liquidation balance sheet for Gordon is presented below:

	Basis	FMV
Cash	$80,000	$80,000
Inventory	$270,000	$700,000
Equipment	$70,000	$80,000
Land	$460,000	$330,000
Accounts Payable	$110,000	$110,000
Bonds Payable to Zyden	$350,000	$350,000
Common Stock	$120,000	$730,000
E&P	$300,000

Additional Information: Gordon has claimed $200,000 of MACRS deprection on the equipment. Gordon purchased the land three years ago as a potential plant site but held it as an investment. Zyden and Randy Grey have $96,0100 and $24,000 bases in their Gordon stock. Both have held the stock for 10 years. Gordon adopts a plan of liquidation. Gordon transfers $350,000 of inventory to Zyden to retire the bonds. The shareholders receive their share of Gordons remaining assets and assume their share of Gordons liabilities (other than federal income taxes). Gordon pays federal income taxes owed on the liquidation. Assume a 21% corporate tax rate.

Requirements:

What are the tax consequences of the liquidation?

Determine the corporate taxes owed by Gordon Corporation.

Does Zyden recognize a gain or loss on the redemption of Gordon Corporation stock held by Zyden? What about the retirement of bonds?

What is Zydens basis for the property received (Cash, Inventory, Equipment, Land)

Does Randy Grey recognize a capital gain, capital loss, or ordinary gain on the distribution from Gordon Corporation?

What is Randys basis for the property received? (Cash, Inventory, Equipment, Land)

** Please provide a breakdown or explanation and not just an answer if possible. Thank you!