Patrice owns 100% of Alpha Corporation's stock. She purchased her stock ten years? ago, and her current basis for the stock is $215,000. On June 10, Patrice decided to liquidate Alpha. Alpha's balance sheet prior to the sale of the? assets, payment of the liquidation expenses, and payment of federal income? taxes, as well as some additional information is as? follows:

Assets			Basis				FMV
Cash		$230,000				$230,000
Marketable securities		110,000				106,000
Equipment		230,000				305,000
Land		300,000				640,000
Total		$870,000				$1,281,000
Equity
Common stock		$275,000				$1,281,000
Retained earnings (and E&P)		595,000
Total		$870,000				$1,281,000

•	The corporation has claimed depreciation of $230,000 on the equipment.
•	The corporation received the marketable securities as a capital contribution from Patrice three years earlier at a time when their adjusted basis was $110,000 and their FMV was $102,000.
•	Alpha incurred $21,000 in liquidation expenses in its final tax year. Requirements a. What are the tax consequences of the liquidation to Patrice and Alpha Corporation? Assume a 34?% corporate tax rate. b. How would your answer change if Patrice contributed the marketable securities six years? ago?