10 Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $617,500. The corporation's basis in the Tea Company stock was $407,500. The land had a basis to Tea Company of $682,500. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives? Multiple Choice $210,000 gain recognized and a basis in the land of $682,500. $210,000 gain recognized and a basis in the land of $617,50o. No gain recognized and a basis in the land of $682,500. No gain recognized and a basis in the land of $275,000.

(D) A Problem 7 Free-Strikes Ltd., a Canadian public corporation, has offered Ms. Bast $2,525,000 for the assets, which started operations in 2009. Batterup Ltd. has been quite profitable in recent years. As a result, Ms. Bast owns all the common shares of Batterup Ltd., a Canadian-controlled private corporation. excluding cash, as at December 31, 2022. The offer price reflects unrecorded goodwill of $475,000. Bast wants to wind up the company after the sale of the assets. The pro forma balance sheet of Batterup Ltd. as at December 31, 2022, is as follows: Assets Cash TTA: 54, 83(2), 840 84021) 801) Cost UCG FMV $ 25,000 Accounts receivable (net) 87,500 75,000 Inventory. 222,500 155,000 Land 110,000 450,000 Building 350,000 $ 75,000 950,000 450,000 220,000 100,000 142,500 320,000 $1,387,500 $2,050,000 Equipment Marketable securities Liabilities Current liabilities Future income taxes. Shareholder's Equity Share capital (PUC) Retained earnings Total liabilities and equity Additional…

Jay  Please give me correct answer with explanation

H6.