Your client, Big Corporation, and its wholly owned subsidiary, LittleCo, file a consolidated return for Federal income tax purposes. Indicate both the financial accounting and the tax treatment of the following transactions.

a.LittleCo pays a $1 million dividend to Big.

b.LittleCo sells investment land to Big. LittleCo's basis in the land is $200,000. The sale price is $600,000.

c.Six months after purchasing the land from LittleCo, Big sells the investment land to Phillips, an unrelated party, for $750,000.