Liquidation- General Rules ( 331 and 336). I, an individual, owns all of the stock of T Corporation. I formed the business seven years ago in a tax-free $ 351 transaction by contributing $100,000 cash and assets with a basis of $300,000 and a fair market value of $700,000. I decided to completely liquidate T Corporation, and all the assets of T are distributed to I. The balance sheet for T immediately prior to the liquidation is as follows:

		Basis	Fair Market Value
Cash		$10,000	$10,000
Accounts receivable		100,000	70,000
Equipment	$400,000
Less: Accumulated depreciation	(250,000)	150,000	120,000
Total Assets		260,000	200,000
Retained earnings (deficit)		($140,000)	$0
Common stock		400,000	200,000
Total equity		260,000	200,000

a. How much gain or loss, if any, will T Corporation recognize as a result of the liquidation?

b. What is I's recognized gain or loss?

c. What is I's basis in the assets received?