In 20x0. Cab Co liquidates. Cab has 3 assets; $250,000 cash (before paying the $20,000 of liquidating expenses and tax expense), equipment with a FMV of $28,500; and land with a FMV of $130.000.

Cab's basis in the equipment is $10,000 (after $70,000 of depreciation) and in the land is

$50.000

In 20x0, Cab had $45,000 of regular operating taxable income, the liquidation expenses and the distributions.

Cab has 2 shareholders (50%/50%):

Ed has a stock basis of $50,000, and receives the equipment.

Aileen has a stock basis of $20,000, and receives the land.

How much taxable income will Cab Corp report in its last tax return?

A)$25,000

B)$123,500

C)$143,500

D)$183,500

E)$373,500

What is Aileen basis in land received from Cab?

A)$0

B)$20,000

C)$50,000

D)$110,000

E)$130,000

What is Ed's total capital gain or loss from the liquidation?

a)($21,500)

b)$18,500

c)$103,502

d)$131,283

e)$144,250