On April 23, 2020, Auk Corporation acquires 100% of the outstanding stock of Amazon Corporation (E & P of $750,000) for $1,200,000. Amazon Corporation has assets with a fair market value of $1,400,000 (basis of $800,000), no liabilities, and no loss or tax credit carryovers. Auk Corporation files a timely 338 election. Assume that both the aggregate deemed sale price (ADSP) and adjusted grossed- up basis (AGUB) are $1,306,329. If an amount is zero, enter "0". If required, round your answers to the nearest dollar. a. What are the tax consequences of the 5 338 election to Amazon Corporation and to Auk Corporation? Amazon Corporation is deemed to have sold its assets which results in a realized gain 506,329 recognized. Amazon is treated as a new Corporation now has a basis of $ of $ 506,329 of which corporation with E&P $ 0.Amazon X in the assets, and its holding period in the assets begin on April 24, 2020 Auk Corporation has a recognized gain of s 0and its basis in the Amazon Corporation stock is $ 1,200,000. Feedback b. Assume that Amazon Corporation is liquidated immediately following the 5 338 election. What are the tax consequences of the liquidation to Amazon Corporation and to Auk Corporation? Amazon Corporation recognizes no gain or loss Corporation. Auk Corporation recognizes no gain or loss of $ Corporation. Under 334(b), Auk's basis in the assets is $ begin on April 23, 2020 of $ 0 on the liquidating distribution of assets to Auk on the receipt of the assets in liquidation of Amazon X and the holding period for the assets