Question: 5 . Orange Corporation has a wholly owned subsidiary, Green Corporation. Upon liquidation of Green pursuant to 3 3 2 , Orange receives Green s

5. Orange Corporation has a wholly owned subsidiary, Green Corporation. Upon liquidation of Green pursuant to 332, Orange receives Greens only asset, a parcel of land worth $400,000. Green Corporation had a basis of $320,000 in the land.
a. What are the tax consequences of this land transfer to Green Corporation?
b. What are the tax consequences to Orange Corporation?

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