Company Y is liquidating. It plans to distribute the following assets (all held for 8 years) to its two shareholders, A (who owns 8 shares with $15,000 a/b) and B (who owns 2 shares with $1,000 a/b). Company Y will distribute the cash and inventory to A and the goodwill to B.

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 A: ______________________________________________

Gain/Loss to B: ______________________________________________

Adjusted Basis A will have in the inventory she receives: _____________________