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 million, 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. Maria owns 85% of the stock in the corporation, and Paul owns 15%. Pink 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?

a. Distribute all the land to Maria.

b. Distribute all the land to Paul.

c. Distribute 85% of the land to Maria and 15% to Paul

d. Distribute 50% of the land to Maria and 50% to Paul. e. Sell the land and distribute the proceeds of $500,000 proportionally to Maria and to Paul.