Red Corporation owns assets valued at $500,000 and liabilities at $200,000, and White Corporation…

Red Corporation owns assets valued at $500,000 and liabilities at $200,000, and White Corporation has assets valued at $1 million and liabilities of $150,000. Red transfers 75% of its voting stock to White in exchange for 90% of its assets. White distributes the Red stock, its own remaining assets, and all of its liabilities to the White shareholders. White then liquidates.