The stock of Orr Corporation (E & P of $1.5 million) is owned as follows: 90% by Hoff Corporation (basis of $900,000), and 10% by Zoe (basis of $70,000). Both shareholders acquired their shares in Orr more than six years ago. In the current year, Orr Corporation liquidates and distributes land (fair market value of $1.1 million, basis of $1.3 million) and equipment (fair market value of $700,000, basis of $410,000) to Hoff Corporation, and securities (fair market value of $200,000, basis of $260,000) to Zoe.

What are the tax consequences of these distributions to Hoff, to Orr, and to Zoe?

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