X, an individual, owns all of the shares of Spring Inc., a C corporation which she has owned for the last ten years. In the current year, X decides to liquidate Spring Inc. by distributing all of the corporate assets in-kind to herself. The corporation has no liabilities. Xs basis in the Spring stock is $200,000. The corporate assets have a basis of $260,000 and a fair market value of $700,000. Assume a corporate tax rate of 21% and an individual tax rate of 20%.

As a result of this complete liquidation of Spring Inc., compute the following:

1. Spring Inc's tax liability, if any

2. X's tax liability, if any