Pursuant to a complete liquidation, Carrot Corporation distributes to its shareholders real estate held as an investment (basis of $839,200, fair market value of $1,090,960). Determine the gain or loss recognized by Carrot on the distribution if no liability is involved. If no liability is involved, Carrot has a recognized gain of $ on the distribution. b. Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liability of $923,120. If the real estate is subject to a liability of $923,120, Carrot has a recognized gain of $ Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liability of $1,174,880. If the liability were $1,174,880, Carrot's recognized gain on the distribution would be $