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.
Assume Apparel purchased the tie business from Silk four years ago for $250,000 cash.A pro rata distribution attributable to a sale of the tie business should qualify for sale treatment under the meaningful reduction test.