marsha owns 100 of gamma corporation common stock gamm

Gamma has held the marketable securities for two years. In addition, Gamma has claimed $60,000 of MACRS depreciation on the machinery and $90,000 of straight-line depreciation on the building. On January 2 of the current year, Gamma liquidates and distributes all property to Marsha except that Gamma retains cash to pay the accounts payable and any tax liability resulting from Gamma liquidation. Assume that Gamma has no other taxable income or loss. Determine the tax consequences to Gamma and Marsha. Assume a 34% corporate tax rate.