1. Terminateco has assets with a FMV of $5 Million and a tax basis of $2 Million. The corporate tax rate is 21%. Richard is the only shareholder, and the tax basis of his shares is $1 Million. The capital gains tax rate is 20% for individuals. If Terminateco liquidates by distributing assets to Richard, and each asset has a FMV greater than its tax basis, then (7 points):

a. Terminateco gain or loss_____________________________________________

b. Tax paid by Terminateco_________________________________________

c. Assets distributed to Richard_____________________________________

d. Richard gain or loss___________________________________________________

e. Tax paid by Richard____________________________________________________

f. Basis of assets received by Richard______________________________________

g. What happens to tax "attributes" of Terminateco_______________

2. Terminateco has assets with a FMV of $5 Million and a tax basis of $2 Million. The corporate tax rate is 21%. Rickco, a corporation, is the only shareholder, and the tax basis of its shares is $1 Million. If Terminateco liquidates by distributing assets to Rickco, and each asset has a FMV greater than its tax basis, then (7 points):

h. Terminateco gain or loss_______________________________________________

i. Tax paid by Terminateco_______________________________________________

j. Assets distributed to ricko___________________________________________

k. Rickco gain or loss___________________________________________________

l. Tax paid by Rickco____________________________________________________

m. Basis of assets received by Rickco ________________________________________