Haruki and Bob have owned and operated SOA as a C corporation for a number of years. When they formed the entity, Haruki and Bob each contributed $$100,000$ to SOA. Each has a current basis of $$100,000$ in his SOA ownership interest. Information on SOA's assets at the end of year $5$ is as follows $($SOA does not have any liabilities$)$:

Assets FMV Adjusted Basis Built$-$in Gain

Cash $ $200,000$ $ $200,000$ $ $0$

Inventory $80,00040,00040,000$

Land and building $220,000170,00050,000$

Total $ $500,000$

At the end of year $5,$ SOA liquidated and distributed half of the land and building, 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.$

Problem $04-63$ Part a $($Static$)$

a$.$ What are the amount and character of gain or loss SOA will recognize on the liquidating distribution?