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 $9,000, and the tax basis of Kenny's shares is $4,000. SP reported the following balance sheet at the date of liquidation, Answer the following questions: Cash Accounts receivable: Stock investment Land Adjusted tax basis FMV 19,000 17,000 $ 19,000 17,000 7,200 38,000 12,000 72,000 $ 120,000 $ 108,000 12,000 $ 120,000 Total assets $ 81,200 Common stock-Cartman (90%) Common stock-Kenny (10%) Total shareholder equity Required: a. Compute the gain or loss recognized by SP, Cartman, and Kenny on a complete liquidation of the corporation, where SP distributes $12,000 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's tax rate is zero. c. What form needs to be filed with the liquidation of SP? Complete this question by entering your answers in the tabs below. Req A to B Req C a. Compute the gain or loss recognized by SP, Cartman, and Kenny on a complete liquidation of the corporation, where SP distributes $12,000 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's tax rate is zero. (For both requirements, leave no answer blank. Enter zero if applicable.) Gain or loss recognized by SP Gain or loss recognized by Cartman Gain or loss recognized by Kenny Part A Part B Show less