The stock of Magenta Corporation is owned by Fuchsia Corporation (95%) and Marta (5%). Magenta is liquidated in the current year. Magenta distributes assets worth $950,000 (A/B of $600,000) to Fuchsia. Fuchsias basis in the Magenta stock is $700,000. Magenta distributes land with a FMV of $50,000 (A/B of $40,000) to Marta. Martas A/B in her Magenta stock is $30,000. Assume no 338 election is made.

a. What are the realized and recognized gain to Magenta on the distributions to Fuchsia and Marta?

b. What are the realized and recognized gain to Fuchsia on the liquidation of Magenta? What is Fuchsias A/B in the Magenta assets?

c. What are the realized and recognized gain to Marta on the liquidation of Magenta? What is Martas basis in the land she receives in the liquidation?