20-48 LiquidationsGeneral Rule (S$ 331 and 336). T, an individual, owns all the stock of C Corporation. T purchased the stock 10 years ago for $400,000. T decided to completely liquidate C Corporation and all assets of C Corporation were distrib- uted to T. The balance sheet of C Corporation immediately prior to the liquidation was as follows: Fair Market Value Basis $ 45,000 45,000 $ 45,000 100,000 $350,000 (150,000) Cash ... Marketable securities.. Equipment. .... Less: Accumulated depreciation.. Land ... Total assets Retained earnings Common stock Total equity 200,000 510,000 $800,000 $400,000 400,000 $800,000 250,000 915,000 $1,310,000 $ 0 1,310,000 $1,310,000 a. a. What is T's recognized gain or loss? b. What is T's basis in the assets received? How much, if any, income or loss will C Corporation recognize as a result of the liquidation? c