1. Pursuant to a complete liquidation, Oriole Corporation distributes land
2. (FMV = $750,000, basis = $600,000) to its shareholder, Chang, in exchange for all of his stock. The land is subject to a liability of $800,000.Chang paid $400,000 for his stock six years ago.Oriole Corp.'s marginal tax rate is 21%.Chang has an individual marginal tax rate of 24%, and both a dividend and long-term capital gains tax rate of 15%.

a.What is Oriole's recognized gain or loss on the distribution?

__________________

(gain / loss)

1. What is Oriole's tax liability or benefit as a result of the distribution?__________________

(liability / benefit)

1. What is the amount of Chang's distribution?__________________

1. What is Chang's recognized gain or loss as a result of the distribution?__________________

(gain / loss)

1. What is Chang's tax liability or benefit as a result of the distribution? Assume he has sufficient long-term capital gains from the sale of other stock. __________________

(liability / benefit)

1. What is Chang's basis in the land?__________________

1. What is Chang's basis in his Oriole stock?__________________