In a liquidating distribution, Page Corporation distributes land to its shareholders. Page Corporation purchased the land 15 years ago. Page Corporation distributes land with FMV of $900,000, adjusted basis of $950,000 equally to its two individual shareholders Rose and Cole. Rose and Cole do not get along and are not related to each other. Rose (15%) owner has stock basis of $10,000. Cole (85%) owner has stock basis of $200,000.
a. What is the tax result to Page Corporation on the distribution?
b. What is the tax result (including basis of the property received) to Rose?
c. What is the tax result (including basis of the property received) to Cole?