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 Corporations by distributing the assets to Cartman and Kenny. SP reported the following balance sheet at the date of liquidation:

	Adjusted Basis	FMV
Cash	$12,000	$12,000
Accounts Receivable	8,000	8,000
Stock Investment	2,000	10,000
Land	40,000	70,000
Total Assets	$62,000	$100,000
Common Stock - Cartman (90%)	$10,000	$90,000
Common Stock - Kenny (10%)	7,000	10,000
Total Shareholder Equity	$17,000	$100,000

a) Compute the gain or loss recognized by SP, Cartman, and Kenny on a complete liquidation of the corporation, where SP distributes $10,000 of cash to Kenny and the remaining assets to Cartman.

b) Compute the gain or loss recognized by SP and Kenny on a complete liquidation of the corporation, where SP distributes the stock investment to Kenny and the remaining assets to Cartman. Assume SP's tax rate is zero.

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