Last year Pink Corporation acquired land and securities in a 351 tax-free exchange. On the date of the transfer, the land had a basis of $720,000 and a fair market value of $1,000,000 and the securities had a basis of $110,000 and a fair market value of $250,000. Pink Corporation has two shareholders, Maria and Paul, who are unrelated individuals. Maria owns 85% of the stock in Pink Corporation, and Paul owns 15%. The corporation adopts a plan of liquidation in the current year. On this date, the value of the land has decreased to $500,000. What is the effect of each of the following on Pink Corporation? If an amount is zero, enter "0". a. If Pink Corporation distributes all the land to Maria, the corporation has a realized gain X of $ of which Feedback will be recognized. Check My Work Section 336(a) provides that a corporation recognizes gain or loss on the distribution of property in a complete liquidation. The property is treated as if it were sold at its fair market value. This treatment is consistent with the notion of double taxation that is inherent in operating a business as a C corporation-once at the corporate level and again at the shareholder level. There are four exceptions to the general rule of gain and loss recognition by a liquidating corporation. b. If all the land is distributed to Paul, Pink Corporation will have a realized loss of s recognized. of which $ Feedback Check My Work Incorrect c. If 85% of the land is distributed to Maria and 15% to Paul: On the distribution to Maria, Pink Corporation has a $ realized on the distribution of which is recognized. On the distribution to Paul, Pink Corporation has a $ realized on the distribution of which is recognized. Feedback Check My Work Incorrect d. If 50% of the land is distributed to Maria and 50% to Paul, Pink Corporation has a $ which s is disallowed. realized of