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/loss) of $______ of which $______ will be recognized.

b. If all the land is distributed to Paul, Pink Corporation will have a realized loss of $_______ of which $_______ is recognized.

c. If 85% of the land is distributed to Maria and 15% to Paul: On the distribution to Maria, Pink Corporation has a $_______ realized (gain/loss) on the distribution of which $_______ is recognized.

On the distribution to Paul, Pink Corporation has a $______ realized (gain/loss) on the distribution of which $_______ is recognized.

d. If 50% of the land is distributed to Maria and 50% to Paul, Pink Corporation has a $________ realized (gain/loss) of which $________ is disallowed.

e. If the land is sold and the proceeds of $500,000 are distributed proportionately to Maria and to Paul, Pink Corporation would recognize a (gain/loss) of $_______.