X Corp. owns the following assets. X Corp. acquired the bonds by purchase after it was incorporated.

Asset	Tax Basis	FMV
Land	$1,000	$3,500
Bonds	$4,000	$1,200
Cash	$5,300	$5,300
Total	$10,300	$10,000

The following shareholders own all of the stock of X Corp. as follows:

Name	Tax Basis	FMV	Percentage of Common Stock
Christopher Smith	$3,700	$5,000	50%
Mary Wilson	$2,400	$3,000	30%
Jeff Erney	$2,300	$2,000	20%
Total		$10,000	100%

X Corp. adopts a plan of liquidation.

(a) What are the U.S. tax consequences to X Corp. and each of its shareholders if X Corp. distributes

(i) the land and $1,500 cash to Smith;

(ii) the bonds and $1,800 to Wilson; and

(iii) $2,000 to Erney?

Assume in this scenario that Smith, Wilson, and Erney are unrelated.

(b) Same facts as (a) except that Wilson is Smith's daughter. What are the U.S. tax consequences to X Corp. and each of its shareholders?

(c) What are the U.S. tax consequences to X Corp. and each of its shareholders if X Corp. distributes

(i) the land, 50% of the bonds, and $900 cash to Smith;

(ii) 30% of the bonds and $2,640 to Wilson; and

(iii) 20% of the bonds and $1,760 to Erney? Assume in this scenario that Wilson is Smith's daughter?