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Boring Corp was formed 10 years ago. Exciting Corp owns 90% of the stock in...

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Accounting

Boring Corp was formed 10 years ago. Exciting Corp owns 90% of the stock in Boring Corp and Frank owns the other 10% of the stock. Boring Corp is facing some legal issues and Exciting Corp and Frank decide to liquidate Boring Corp. At the time, Boring Corp owns $200,000 cash, equipment worth $100,000(basis of $20,000), and land worth $200,000(basis of $300,000). Boring Corp liquidates and distributes all its assets to Exciting Corp and Frank on a pro rata basis. What is the tax result to Exciting Corp and Frank?

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