Kango Corporation owns 180 shares of Shanda Corporation. Kafue, an individual shareholder, owns the remaining 20 shares of Shanda Corporation. In 2018, Kango Corporation decided to liquidate Shanda Corporation by distributing the assets to Kango Corporation and to Kafue. The tax basis of Kango Corporation is $20,000, and the tax basis of Kafue's shares is $14,000. Shanda Corporation reported the following balance sheet at the date of liquidation:

	Adjusted Basis	Fair Market Value
Cash	$24,000	$24,000
Accounts Receivable	16,000	I6,000
Investment in Stocks	4,000	20,000
Land	80,000	140,000
Total Assets	$124,000	$200,000
Common Stock-Kango (90%)		180,000
Common Stock- Kafue (10%)		20,000
Total Stockholder Equity		$200,000

Requirements:

1. Compute and analyze the type of gain or loss recognized by Shanda, Kango, and Kafue on a total liquidation of the corporation (Shanda Corporation) whereby Shanda distributes $20,000 of cash to Kafue and the remaining assets to Kango Corporation.
2. Compute and analyze the type of gain or loss recognized by Shanda, Kango, and Kafue on a total liquidation of the corporation (Shanda Corporation) whereby Shanda Corp. distributes the stocks' investment balance to Kafue and the remaining assets to Kango Corporation. Assume Shanda Corporation's tax rate is zero.
3. Determine what tax form or forms need to be filed with the liquidation of Shanda by each party involved in the transaction and explain why.