Tin Corporation was created 10 years ago. It currently is valued at $1.5 million as follows: Tacks division ($420,000), Safety Pins division ($580,000), Paper Clips division ($450,000) and investment assets (stocks valued at $50,000). Tin currently has three shareholders: Antonio, who was the initial shareholder and now owns 40% of the stock (adj. basis $350,000) and Beth and Change, who each purchased 30% of Tin two years ago for $435,000. Tin is having management problems because the shareholders cannot agree on the future of the company. They have determined that it would be best to divide up the company and go their separate ways. Each shareholder feels that the others do not deserve to continue using the Tin Corporation name.

Any investment assets that should be received by the new entities will be distributed to the shareholders as part of the exchange for their Tin stock. Beth is the only shareholder who has indicated that she prefers to receive some of the investment assets. Determine the amount of gain or loss that each entity and shareholder will have upon the division you recommended in part a.