Mary and Jane, unrelated taxpayers, hold Gary Corporation's stock
equally.  One year before the complete liquidation of Gary, Mary
transfers land (basis of $600,000, fair market value of $180,000) to
Gary Corporation as a contribution to capital.  In liquidation, Gary
transfers the land to Jane.  At the time of the liquidations, the land
is worth $150,000.

a.  How much loss may Gary Corporation recognize on the distribution
of the land to Jane?
b.  Assume that the transfer of land to Gary Corporation was made so
that the corporation could subdivide the land and build residential
housing.  However, a subsequent deterioration of the housing market
forced Gary Corporation to abandon its plans.  What amount of loss may
Gary Corporation recognize on the distribution of the land to Jane?