PART A: Newco is owned 100% by Jeff Williams. Jeff's tax basis in his Newco sh ares is 2,200,000 Newco has the following assets and liabilities when it proposes to liquidate Asset Cash Equipment 1,300,000 100,000 Inventory 800,000 600,000 Land Building 4,200,000 2,300,000 Goodwil 1,000,000-0 FMV Tax Basis 200,000 200,000 400,000 200,000 Totals 7,900,000 3.400,000 REQUIRED (1) What is the tax effect of a liquidation to Newco? (2) What is the tax effect of a liquidation to Jeff? PART B: Same as Part A except Newco is owned by Jeffco, also a C corporation. REQUIRED (3) What is the tax effect of a liquidation to Newco? (4) What is the tax effect of a liquidation to Jeffco! VARIATION: Same facts as in Part A and Part B except Newco has a net operating loss (NOL) of $2,000,000. Answer the same questions