Clothing Inc Assume All Necessary Requirements Are Satisfied Unless Otherwise Stated or in the Manufacture

Clothing Inc.and Mr.Red Button formed Apparel Corp.in 1960.It is engaged in the manufacture and sale of shirts and ties.Apparel acquired the tie business from Silk Inc.Now it desires to get out of the tie business but continue in the shirt business.The primary assets of the tie business are: $\begin{array} { l }\text { Assets }&\text { Adiusted Basis }&\text { Fair Market Value }\\\text { Plant }&\$60,000&\$200,000\\\text { Equipment }&20,000&45,000\\\text { Truck }&15,000&8,000\end{array}$
Assume all necessary requirements are satisfied unless otherwise stated or implied.
Both of the shareholders of Apparel are assured of sale treatment assuming they exchange a portion of their stock in exchange for the proceeds from the sale of the tie business.