At the time of its liquidation under 332, Pink Corporation (earnings and profits of $560,000) had

Question:

At the time of its under § 332, Pink (earnings and profits of $560,000) had the following assets and liabilities: cash ($175,000); marketable securities (fair market value of $230,000, basis of $250,000); unimproved land (fair market value of $600,000, basis of $300,000); unsecured note payable ($50,000); and mortgage on the unimproved land ($270,000). Pink also had a net operating loss carryover of $45,000. Wren acquired all of the stock of Pink seven years ago for $160,000.
a) How much gain (or loss) will Pink recognize upon the liquidating of its assets and liabilities to Wren How much gain (or loss) will Wren recognize in the of Pink?
c) What basis will Wren have in the marketable securities and unimproved land it receives in the What happen to Pink's earnings and profits and net operating loss carryover?
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