Company Y is liquidating. It is wholly owned by X Company (which has a $10,000 a/b in the Company Y shares). It plans to distribute the following assets (all held for 8 years) to Company X.

A/B FMV

Cash 2,000 2,000

Inventory 8,000 6,000

Goodwill 1,000 2,000

Gain/Loss to Company Y: ________________________________________

Gain/Loss to Company X: ______________________________________________

Adjusted basis Company X will have in the inventory: ______________________