The stock of Hawk Corporation is owned equally by three sisters, Michele, Melanie, and Miranda. Hawk owns land (basis of $250,000, fair market value of $210,000) that it has held for investment for eight years. When Michele's basis in her stock is $225,000, Hawk distributes the land to her in exchange for all of her shares. What are the tax consequenses for both Hawk and Michele if the distribution is: