Oak Corporation owns 80 percent of the stock of Plumtree Corporation, with the remaining 20% owned 10% each by Michael and Pamela, two unrelated individuals.Oak's basis in its Plumtree stock is $35,000; Michael's basis in his Plumtree stock is $7,000; and Pamela's basis for her Plumtree stock is $8,000.Plumtree has accumulated earnings and profits of $30,000 and the following assets:

Plumtree adopts a plan of complete liquidation and distributes the inventory to Michael, the equipment to Pamela, and the land to Oak Corporation in complete cancellation of all of the shareholders' stock.
For items 1 through 3 select the correct amount and type of income to be reported by each of the shareholders.A tax treatment may be selected once, more than once, or not at all.