3. The Best of Boston, Inc. is a company that provides customized tourist services, such as charters and sightseeing tours in the city of Boston. The company is owned 75% by Linda Smith and 25% by her sister, Amy Smith. Linda has recently married and she is moving with her husband to New York City. As such, Linda and Amy have decided to liquidate the business. Linda will open a new business, the Best of New York, once she is settled. She has decided to take two small vans that belong to Best of Boston, Inc. as her final distribution. Amy, on the other hand, will keep the existing savings of $50,000. Please consider the following questions with respect to this case:

a. Assume you are Best of Bostons accountant. Would you suggest an alternate strategy to minimize or avoid liquidation tax?

b. What gain or loss would Amy recognize?

c. Would Best of Boston recognize a loss on the distribution of the two vans?