Looking for help with the variation PART A Woolworth is owned 100 by Katie D Katies tax basis in her Woolworth shares is 100,000 Woolworth has the following assets and liabilities when it proposes to liquidate Asset FMV Tax Basis Cash 20,000 20,000 Equipment 90,000 70,000 Inventory 130,000 100,000 Land 100,000 40,000 Building 400,000 270,000 Goodwill 200,000 0 Totals 940,000 500,000 REQUIRED What is the tax effect of a liquidation to Woolworth What is the tax effect of a liquidation to Katie PART B Same as Part A except Woolworth is owned by Katco also a C corporation REQUIRED What is the tax effect of a liquidation to Woolworth What is the tax effect of a liquidation to Katco VARIATION Same facts as in Part A and Part B except Woolworth has a net operating loss (NOL) of $600,000 Answer the same questions (both with Katie as the owner and with Katco as the owner)

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Looking for help with the variation  PART A  Woolworth is owned 100  by Katie D  Katies tax basis in her Woolworth shares is 100,000  Woolworth has the following assets and liabilities when it proposes to liquidate  Asset FMV Tax Basis Cash 20,000 20,000 Equipment 90,000 70,000 Inventory 130,000 100,000 Land 100,000 40,000 Building 400,000 270,000 Goodwill 200,000  0  Totals 940,000 500,000 REQUIRED  What is the tax effect of a liquidation to Woolworth  What is the tax effect of a liquidation to Katie  PART B  Same as Part A except Woolworth is owned by Katco also a C corporation  REQUIRED  What is the tax effect of a liquidation to Woolworth  What is the tax effect of a liquidation to Katco  VARIATION  Same facts as in Part A and Part B except Woolworth has a net operating loss (NOL) of $600,000  Answer the same questions (both with Katie as the owner and with Katco as the owner)

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Looking for help with the variation. PART A: Woolworth is owned 100% by Katie D. Katies tax basis in her Woolworth shares is 100,000. Woolworth

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Asset	FMV	Tax Basis
Cash	20,000	20,000
Equipment	90,000	70,000
Inventory	130,000	100,000
Land	100,000	40,000
Building	400,000	270,000
Goodwill	200,000	-0-

Totals	940,000	500,000