Pursuant to a complete liquidation, Wilburn Corporation distributes to its shareholders land held for eight years as an investment (adjusted basis of $670,000 fair market value of $890,000). The land is subject to a liability of $675,000.

a. What are the tax consequences to Wilburn Corporation on the distribution of the land?

Wilburn Corporation would recognize long-term capital gain of $___________on the distribution.

b. If the land is, instead, subject to a liability of $900,000, Wilburn Corporation has a recognized long-term capital gain of $____________on the distribution.