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

	FMV			adjusted base			Appreciation
Money	ps	265,000		ps	265,000
Building		78,000			34,500			43,500
Tierra		187,000			120,500			66,500
Total	ps	530,000		ps	420,000		ps	110,000

a. What amount of gain or loss does 8MH recognize in full liquidation?

b. What amount of gain or loss does JMI recognize on full liquidation?

C. What is JMI's taxable amount on the building and land after full liquidation?