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:

1. What is the tax effect of a liquidation to Woolworth?
2. 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:

1. What is the tax effect of a liquidation to Woolworth?
2. 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).