Martha owns 100% of Omega Corporation's common stock. Omega is an accrual basis, calendar year corporation. Martha formed the corporation six years ago by transferring $200,000 of cash in exchange for the Omega stock. Thus, she has held the stock for six years and has a $200,000 adjusted basis in the stock. Omega's balance sheet at January 1 of the current year is as follows: (Click the icon to view the balance sheet.) Omega has held the marketable securities for two years. In addition, Omega has claimed $10,000 of MACRS depreciation on the machinery and $110,000 of straight-line depreciation on the building. On January 2 of the current year, Omega liquidates and distributes all property to Martha except that Omega retains cash to pay the accounts payable and any tax liability resulting from Omega's liquidation. Assume that Omega has no other taxable income or loss. Requirement Determine the tax consequences to Omega and Martha. Assume a 21% corporate tax rate. Let's begin by determining the tax consequences for Omega. Select the property needed to compute Omega's total gain or loss, compute the gain or loss for each asset and determine the character for each gain or loss. Then, compute Omega's total gain or loss and compute Omega's tax liability. Gain or loss recognized Amount Character