On May 1, 2020, Lilac Corporation purchased 100% of the stock of Coffee Corporation for $1,500,000, the FMV of the Coffee Corporation assets. Coffee Corp.s A/B in the assets was $800,000. Coffee has a capital loss carryover of $56,000 and a NOL carryover of $162,000. Lilac makes a 338 election and then liquidates Coffee under 332.

a. What gain must Coffee Corporation realize and recognize?

b. What basis does Lilac Corp. have in the Coffee assets after the liquidation?

c. What happens to Coffees tax attributes after the 338 election?