tax planning research

. Parent corporation owned 85% of the common stock and 100% of the preferred stock in subsidiary A. Parent's basis in the common stock is $400,000 and its basis in the preferred stock is $185,000. Parent's liquidation preference in the preferred stock is $200,000. On January 8 of this year, subsidiary A adopted a plan of liquidation. Within a week, it paid all its debts and distributed $140,00 to Parent in partial satisfaction of the liquidation preference. No distribution will be made on the common stock. What is the amount and character of Parent's loss?