Sarah owns Gonzalez Corporation, a Corporation. Sarahs basis for his Gonzalez stock is $120,000. The corporations assets are summarized below. In addition, Gonzalez Corporation owes creditors $80,000

Assets	Adjusted Basis	Fair Market Values
Cash	$90,000	$90,000
Cain Corporation Stock	100,000	225,000
Other Equipment	140,000	300,000

Gonzalez Corporation sells the equipment for $300,000 to an unrelated purchaser. Gonzalez then liquidates paying all creditors and any outstanding tax obligations first. Assume a 34% tax rate for Gonzalez. Analyze this transaction. What is the impact to Sarah and Gonzalez Corporation?