Brian owns 100% of Walker Corp. He has a basis in his stock of $20,000. The corporation's only assets are cash of $20,000 and land with a basis of $75,000 and a value of $95,000. Earnings and profits are $125,000. Walker Corp. liquidates and distributes its assets to Brian, whose stock is cancelled. What is the gain recognized by Walker Corp.? What happens to Walker's earnings and profits? What gain is recognized by Brian? What is Brian's basis for the land?


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