Check my Required information [The following information applies to the questions displayed below.) Part 1 of 2 Kevin and Bob have owned and operated SOA as a C corporation for a number of years. When they formed the entity, Kevin and Bob each contributed $100,000 to SOA. They each have a current basis of $100,000 in their SOA ownership interest. Information on SOA's assets at the end of year 5 is as follows (SOA does not have any liabilities): points Assets Cash Inventory Land and building Total Adjusted Basis $200,000 40,000 170,000 FMV $200,000 80,000 220,000 $500,000 eBook Built-in Gain $ 0 40,000 50,000 Print References At the end of year 5, SOA liquidated and distributed half of the land, half of the inventory, and half of the cash remaining after paying taxes (if any) to each owner. Assume that, excluding the effects of the liquidating distribution, SOA's taxable income for year 5 is $0. a. What is the amount and character of gain or loss SOA will recognize on the liquidating distribution? Distribution of the inventory Distribution of the land and building b. What is the amount and character of gain or loss Kevin will recognize when he receives the liquidating distribution of cash and property? Recall that his stock basis is $100,000 and he is treated as having sold his stock for the liquidation proceeds