Jefferson Millinery, Inc. (JMI) decided to liquidate its wholly owned subsidiary, 8 Miles High, Inc. (8MH). 8MH had the following tax accounting balance sheet:

	FMV			Adjusted Basis			Appreciation
Cash	$	252,250		$	252,250
Building		86,750			28,250			58,500
Land		165,500			101,000			64,500
Total	$	504,500		$	381,500		$	123,000
What amount of gain or loss does 8MH recognize in the complete liquidation? b. What amount of gain or loss does JMI recognize in the complete liquidation?