Jefferson Millinery, Inc. (JMI) decided to liquidate its wholly-owned subsidiary, 8 Miles High, Inc. (8MH). 8MH had the following tax accounting balance sheet.

a. What amount of gain or loss does 8MH recognize in the complete liquidation?
b. What amount of gain or loss does JMI recognize in the complete liquidation?
c. What is JMI's tax basis in the building and land after the complete liquidation?

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Adjusted BasisAppreciation Cash Building Land Total 200,000 200,000 10,000 90,000 A000) 30000x) 50,000 150,000 40,000 60,000 100.00)