A owns all the stock of T Corp. The only asset of T Corp. is land worth $180,000 with a basis of $70

A owns all the stock of T Corp. The only asset of T Corp. is land worth $180,000 with a basis of $70,000. A’s basis in T’s stock is $75,000. T Corp is a C Corporation for federal income tax purposes. Y Corp, a publicly traded company, wishes to purchase the land with either $180,000 of Y Corp stock in a taxable transaction or $150,000 of Y Corp stock in a non-taxable transaction. What would be the tax ramifications if T Corp accepts the taxable transaction, and immediately liquidates? The effective tax rate for T Corp is 21% and for A is 35% for ordinary income and 20% for capital gains. Would you answer to C be different if T Corp was an S Corporation? Why is Y Corp willing to give only $150,000 worth of stock for a tax-free exchange?