4.After operating a successful US hotel corporation (H Corp) for several years, Donald decides to set up a wholly owned subsidiary in the export business (X Corp). His initial investment in this corporation is $1,000. Through a stroke of luck, the US tax laws change and X Corp becomes worth $100,000 overnight, even though its balance still only reflects $1,000 cash and $1,000 equity. ( 15 points) Donald is considering selling the operation but is concerned about the tax ramifications. a. What would H Corps gain be if it sold the stock of X Corp for S100,000? b. Instead, Donald has offered to sell X Corp to Bill Corp in a tax free exchange of 100% of X Corp for $100,000 of Bill Corp stock. Assuming Bill Corp accepts this offer, what is Bill Corps basis in X Corp stock? What is H Corps gain, if it immediately sells its stock in Bill Corp for S100,000? c. What alternative structure might Bill Corp offer which might provide additional tax benefits to Bill Corp? Explain and show calculations d. What might Bill Corp do to entice H Corp to accept the revised deal