mktemp-1.5 error while trying to Update in Gentoo

Got the following error while trying to update world:

* Error: The above package list contains packages which cannot be
* installed at the same time on the same system.

('binary', '/', 'sys-apps/mktemp-1.5', 'merge') pulled in by
sys-apps/mktemp required by world

('ebuild', '/', 'sys-apps/coreutils-6.10-r2', 'merge') pulled in by
>=sys-apps/coreutils-5.2.1 required by ('ebuild', '/', 'sys-apps/baselayout-1.12.11.1', 'merge')
>=sys-apps/coreutils-6.10-r1 required by ('ebuild', '/', 'sys-apps/baselayout-1.12.11.1', 'merge')
sys-apps/coreutils required by world
(and 1 more)

As I understand it mktemp is no longer needed as it is now in the updated version of coreutils. DO NOT REMOVE COREUTILS, you will lose very basic linux functions.

Here is how to resolve this error:

emerge -C mktemp
emerge coreutils