Class 5 Problems Al, Bob & Carl are 3 unrelated individuals each of whom own 1,000 of the 3,000 shs of the single class of stock of Alpha Corp. Al's adjusted basis in his shs is $100,000.00 ($100/per share). Bob's adjusted basis in his shs is $100,000.00 ($125 per one block of 500 shs & 75 per share for another block of 500 shs). Carl's adjusted basis in his shs is $120,000.00 ($110 per share for one block of 500 shs & $130 per share for another block of 500 shs). All of the Alpha shs have been held by their owner for more than one year and are capital assets in their hands. All taxpayer's are on the calendar year & use the cash method. The 3 shareholders are also officers, directors and employees of Alpha. Alpha owns and operates 2 apt. complexes: the Rose apartments & the Daisy apartments. Assume that at all relevant times each of the two apt. complexes has a fmv of $600,000, and that there is no recapture potential in either complex. Alpha's adjusted basis in the Rose Apartments is $700,000.00, and Alpha's adjusted basis in the Daisy apartments is $200,000.00 at all relevant times. Alpha had no net income or losses from its operations this year, its taxable income arises solely from the liquidating transaction described below: (a) On 7/1 of the current yr, Alpha formally adopts a plan of complete liquidation. Pursuant to the plan, Alpha sells the Rose apts. to Beta Corp for $600,000.00 on 7/15 & sells the Daisy apts. To S, an individual, for $600,000.00 on 8/15. On 9/1 Alpha distributes the after tax proceeds (assume taxes of $100,000.00 were paid by Alpha) of both sales (plus some misc assets it owned worth $100,000.00) 1/3 to each s/h in exchange for all of their Alpha shs. Alpha Corp. is not dissolved under state law. What are the tax consequences to Al, Bob, Carl & Alpha? (b) (c) On 7/1 of the current yr, Alpha formally adopts a plan of complete liquidation. Pursuant to the plan, Alpha distributes the title to the Rose apts. and the Daisy apts. Plus the misc assets to Al, Bob & Carl as tenants in common. Al, Bob & Carl continue to operate the Rose & Daisy apts. as partners. What are the tax consequences to Al, Bob, Carl & Alpha? Refer to (a) & (b) above. Suppose that pursuant to the plan of liquidation, the Rose apts. Were sold to Beta (as in (a) & cash distributed) & the Daisy apts, were distributed to the shareholders as tenants in common (as in (b)). What are the tax consequences to Al, Bob, Carl & Alpha