Question 1 Mike and Michelle decided to liquidate their jointly owned corporation, Pennsylvania Corporation. After liquidating its remaining inventory and paying off its remaining liabilities, Pennsylvania had the following tax accounting balance sheet. Under the terms of the agreement, Mike will receive the $200,000 cash in exchange for his 40 percent interest in Pennsylvania. Mike's tax basis in his Pennsylvania stock is $50,000. Michelle will receive the building and land in exchange for her 60 percent interest in Pennsylvania. Her tax basis in the Pennsylvania stock is $100,000. a) What amount of gain or loss does Michelle recognize in the complete liquidation b) What is her tax basis in the building and land after the complete liquidation? c) What amount of gain or loss does Pennsylvania Corporation recognize? d) How will your answer for c) change if Michelle is not an individual shareholder, but a corporate shareholder instead? Explain your answer in details