Question - Midland Corporation is liquidated on April 1, 2012 and its assets are distributed, pro rata, to its 10 equal and unrelated individual shareholders. The assets distributed are as follows:
a) marketable securities with a basis to Midland of $300,000, value at distribution of $250,000, and
b) land with a basis to Midland of $500,000, value at distribution of $600,000.
What are the tax consequences of the liquidating distribution?