X is a publicly owned operating company that holds as an Investment 10,000 shares (basis $40,000 and FMV $100,000) of the common stock of Y, also a public company. X distributes pro rata to its shareholders rights to purchase Y shares from X at $1 0 per share at any time during the next two years. By the end of the two-year period, the market price of Y stock has increased to $15 per share. Some rights holders exercised them and others sold them in the market to third parties who exercised them. All rights had been exercised by the expiration date. What are the tax results to X and X's shareholders?