Problem 20-30 (C) (LO. 1) Pursuant to a complete liquidation in the current year, Pelion Corporation distributes to Sergio land (basis of $910,000, fair market value of $870,000) that was purchased three years ago and held as an investment. The land is subject to a liability of $655,000. Sergio, who owned 25% of the Pelion shares outstanding, had a basis of $200,000 in the stock. What are the tax consequences of the liquidating distribution? On the liquidating distribution of land, Pellon Corporation will recognize a of $ and Sergio will recognize of $ Sergio will have a basis of $ in the land