Cartman Corporation owns $90$ shares of SP Corporation. The remaining $10$ shares are owned by Kenny $($an individual$).$ After several

years of operations, Cartman decided to liquidate SP Corporation by distributing the assets to Cartman and Kenny. The tax basis of

Cartman's shares is $$11,000,$ and the tax basis of Kenny's shares is $$6,000.$ SP reported the following balance sheet at the date of

liquidation:

Required:

a$.$ Compute the gain or loss recognized by SP$,$ Cartman, and Kenny on a complete liquidation of the corporation, where SP distributes

$$11,000$ of cash to Kenny and the remaining assets to Cartman.

b$.$ Compute the gain or loss recognized by SP$,$ Cartman, and Kenny on a complete liquidation of the corporation, where SP distributes

the stock investment to Kenny and the remaining assets to Cartman. Assume that SP$\text{'}$s tax rate is zero.

c$.$ What form needs to be filed with the liquidation of SP$?$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

a$.$ Compute the gain or loss recognized by SP$,$ Cartman, and Kenny on a complete liquidation of the corporation, where SP

distributes $$11,000$ of cash to Kenny and the remaining assets to Cartman.

b$.$ Compute the gain or loss recognized by SP$,$ Cartman, and Kenny on a complete liquidation of the corporation, where SP

distributes the stock investment to Kenny and the remaining assets to Cartman. Assume that SP$\text{'}$s tax rate is zero.

Note:For both requirements, leave no answers blank. Enter zero if applicable.