Peggy owns 100% of Alpha Corporation's stock. She purchased her stock ten years ago, and her current basis for the stock is $100,000. On June 10, Peggy decided to liquidate Alpha. Alpha's balance sheet prior to the sale of the assets, payment of the liquidation expenses, and payment of federal income taxes, as well as some additional information is as follows: (Click the icon to view the balance sheet.) Read the requirements (Click the icon to view the additional information.) Requirement a. What are the tax consequences of the liquidation to Peggy and Alpha Corporation? Assume a 21% corporate tax rate. Let's begin by determining the tax consequences for Alpha. Start by computing Alpha's recognized gain or loss on each of the assets distributed to Peggy (and in total) as a result of the liquidation. (Complete all input fields. Enter a "0" in the "Recognized gain (loss)" column, and enter "N/A" in the "Character of gain or loss" column if no gain or loss is recognized by Alpha.) Assets Basis FMV Recognized gain (loss) Character of gain or loss Cash $ 280,000 $ 280,000 Marketable securities Equipment 40,000 25,000 170,000 250,000 370,000 710,000 Land 860,000 $1,265,000 Total