Original capital contribution   $ 1,000,000

Cumulative tax losses over 15 years   ($1,500,000)

Cash flow distributed over 15 years   ($50,000)

Tax capital account prior to sale   ($550,000)

Sales proceeds distributed   ($250,000)

Tax capital account upon liquidation    ($800,000)

Gain from sale and liquidation   $800,000

Estimated corporate tax rate   35%

Estimated tax on sale and liquidation   $280,000