Sweet and Salty Corp is a holding company (HoldCo) with two subsidiaries. One sub (Salty) produces salty snacks and the other (Sweet) produces healthy sweet soft drinks. Tastebud an individual owns 60% of HoldCo. Her basis is $6,000. She acquired the shares 8 years ago. She feels that the emphasis on healthy food is causing Hold Cos stock to be depressed in value. She proposes that Hold Co distribute Salty to the shareholders ratably so that each shareholder will own their proportionate amount of each company. Hold Cos basis in Salty is $22,000. HoldCo distributes the shares of Salty, and Tastebud receives 60 of the 100 shares of Salty. Immediately after the distribution Tastebuds Salty shares are worth $30,000 and her Sweet shares are worth $70 000. a) The total value of the Salty shares distributed was $50,000. How much gain or loss does HoldCo recognize as a result of the distribution? b) How much if any gain or loss does Tastebud recognize on receipt of the Salty shares? c) What is Tastebuds adjusted basis in the Salty shares received? d) What is Tastebuds holding period in the Salty shares? Explain briefly why Tastebud does or does not recognize gain or loss on the distribution of Salty.