The Stock of Tan Corporation (E & P of $800,000)is

Essay

The stock of Tan Corporation (E & P of $800,000)is owned as follows: 85% by Egret Corporation (basis of $470,000),and 15% by Zoe (basis of $45,000).Both shareholders acquired their shares in Tan more than six years ago.In the current year,Tan Corporation liquidates and distributes land (fair market value of $870,000,basis of $950,000)and equipment (fair market value of $405,000,basis of $280,000)to Egret Corporation,and securities (fair market value of $225,000,basis of $250,000)to Zoe.What are the tax consequences of these distributions to Egret,to Tan,and to Zoe?