Corporate Liquidation Problem PART A: Newco is owned 100% by Jeff Williams. Jeff's tax basis in his Newco shares is $1,300,000. Newco has the following assets and liabilities when it proposes to liquidate. REQUIRED: (1) What is the tax effect of a liquidation to Newco? (2) What is the tax effect of a liquidation to Jeff? PART B: Same as Part A except Newco is owned by Jeffco, also a C corporation. REQUIRED: (3) What is the tax effect of a liquidation to Newco? (4) What is the tax effect of a liquidation to Jeffco? VARIATION: Same facts as in Part A and Part B except Newco has a net operating loss (NOL) of $2,200,000. Answer the same questions (both with Jeff as the owner and with Jeffco as the owner)