23.

Please show the reasoning behind the answer. Thanks.

24.

Please show the reasoning behind the answer. Thanks.

This year, pursuant to a complete liquidation, Richards corporation distributes the following to its 100% shareholder (an individual): cash ($20,000), inventory (basis $10,000, FMV $20,000) and land held as an investment (basis $5,000, FMV $40,000). The land is subject to a $70,000 liability. What are the amounts and character of income to be recognized by Richards Corporation? $10,000 ordinary income; $35,000 capital gain. $10,000 ordinary income: $65,000 capital gain. $0 ordinary income: $0 capital gain. $10,000 ordinary income: $5.000 capital gain. None of the other choices are truc