Question: Blush Corporation owns long term bonds basis of 1 3 million of
Blush Corporation owns long-term bonds (basis of $1.3 million) of its subsidiary, Brass Corporation, that were acquired at a discount. Upon liquidation of Brass pursuant to § 332, Blush receives a distribution of $1.5 million, the face amount of the bonds. Determine Blush Corporation's recognized gain or loss on the distribution.
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