PART A: Newco is owned 100% by Jeff Williams. Jeff's tax basis in his Newco shares is $3,000,000. Newco has the following assets and liabilities when it proposes to liquidate. Asset FMV Tax Basis Cash 250,000 250,000 Equipmen 950,000 -0- t Inventory 800,000 200,000 Land 600,000 400,000 Building 1,600,000 550,000 Goodwill 1,300,000 -0- Totals 5,500,000 1,400,000 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 $3,600,000. Answer the same questions (both with Jeff as the owner and with Jeffco as the owner)