Majority Corporation owns 90% of Subsidiary Corporation's stock and has a $54,000 basis in that stock. Maeve owns the other 10% and has a $6,000 basis in her stock. Subsidiary holds $45,000 cash and other assets having a $160,000 FMV and a $60,000 adjusted basis. Pursuant to a plan of liquidation, Subsidiary (1) distributes to Maeve assets having a $16,000 FMV and a $6,000 adjusted basis prior to the liquidation, (2) distributes to Majority assets having a $144,000 FMV and a $54.000 adjusted basis prior to the liquidation, and (3) distributes ratably to the two shareholders any cash remaining after taxes. Assume a 21% corporate tax rate and a 15% capital gains tax rate. Read the requirements. Requirement a. What are the tax consequences of the liquidation to Majority Corporation, Subsidiary Corporation, and Maeve? We will address the tax consequences to each party separately, beginning with Subsidiary Corporation. (Round all answers to the nearest whole dollar. Enter a "0" if a gain or loss does not apply or for any zero balances. Use a minus sign or parentheses to enter a loss.) Tax consequences to Subsidiary Corporation: Subsidiary recognizes a gain/(loss) on the distribution to Majority Corporation and a [ leaving gain/(loss) on the cash to distribute distribution of property to Maeve. Subsidiary's total tax on any net gains is to Majority and to Maeve Requirements a. What are the tax consequences of the liquidation to Majority Corporation, Subsidiary Corporation, and Maeve? b. Can you recommend a different distribution of assets that will produce better tax results than in Part a? Print Done