PROBLEMS 1. P, Inc. ("P") owns 90 percent of the outstanding stock of S, Inc. ("S"). Individual ("T") owns the remaining 10 percent of S. P's basis in its stock is $3,000. I's basis in his S stock is $200. S has accumulated earnings and profits of $2,000 and the following assets: Asset Adjusted Basis Fair Market Value Land $3,000 $8,000 Equipment $2,500 $1,000 Inventory $ 100 $1,000 Swishes to liquidate and distribute all of its assets to its shareholders. What are the tax consequences to P, S and I in the following alternative situations? (a) S distributes the inventory to I and the other assets to P. (b) S distributes the equipment to I and the other assets to P. How might S improve this result? (c) What result in (b), above, if P's basis in its S stock were $30,000 and S had a $30,000 basis in the land? (d) Is (c), above, a situation where P might wish to avoid the application of 8 332? Why? How might this be accomplished? Consider in this regard the $ 332 qualification requirements and how a parent might assure that they are not met. din have