Question: Senior Corp. completely liquidates its 8 0 % - owned subsidiary , Junior Corp. The liquidation results in a distribution to Senior of property with

Senior Corp. completely liquidates its 80%-owned subsidiary , Junior Corp. The liquidation results in a distribution to Senior of property with a fair market value of $ 1,000,000 and an adjusted basis to Junior of $ 400,000. How much gain, if any, will Senior and Junior each recognize on the transaction ? Senior, $0; Junior, $600,000 Senior, $0; Junior , $0. Senior, $0 ; Junior, $ 120,000 Senior, $600,000; Junior, $0.

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