Loser Corporation decides to liquidate and files a plan of liquidation with the IRS. It is unable

Question:

Loser decides to liquidate and files a plan of with the IRS. It is unable to sell its assets, so it distributes them to its sole shareholder, Bummer. There are only three assets: inventory (fair market value = $4,000; basis = $3,500), building (fair market value = $56,000; basis = $67,000), and machines (fair market value = $38,000; basis = $29,500). Bummer surrenders all of his stock with a basis of $187,000 in exchange for the property. What are the tax consequences to Loser and to Bummer as a result of this Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....