Snook owns 70% of Andiron Corporation stock. At the beginning of the current year, the corporation has $475,000 of NOLs. Snook plans to liquidate the corporation and have it distribute assets having a $700,000 FMV and a $375,000 adjusted basis to its shareholders. Explain to Snook the tax consequences of the liquidation to Andiron Corporation.

Gain or loss Andiron will recognize upon liquidating the company's assets.

Recognized gain (loss)