! Required information Problem 19-63 (LO 19-5) (Algo) [The following information applies to the questions displayed below.] Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: FMV Adjusted Tax Basis Appreciation (Depreciation) $ $ Cash Land 382,000 382,000 Building 76,000 306,000 15,750 377,500 60,250 (71,500) $ 764,000 $ 775,250 Total $ (11,250) Under the terms of the agreement, Tiffany will receive the $382,000 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $65,000. Carlos will receive the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $145,500. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) Problem 19-63 Part a (Algo) a. What amount of gain or loss does ROF recognize in the complete liquidation? Gain or loss recognized b. What amount of gain or loss does Tiffany recognize in the complete liquidation? Gain or loss recognized c. What amount of gain or loss does Carlos recognize in the complete liquidation? Gain or loss recognized d. What is Carlos's adjusted tax basis in the building and land after the complete liquidation? Building Land Tax basis Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $305,600 in the liquidation and Carlos will receive the land and building plus $76,400. e. What amount of gain or loss does ROF recognize in the complete liquidation? Gain or loss recognized Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $305,600 in the liquidation and Carlos will receive the land and building plus $76,400. f. What amount of gain or loss does Tiffany recognize in the complete liquidation? Gain or loss recognized Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $305,600 in the liquidation and Carlos will receive the land and building plus $76,400. g. What amount of gain or loss does Carlos recognize in the complete liquidation? Gain or loss recognized Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $305,600 in the liquidation and Carlos will receive the land and building plus $76,400. h. What is Carlos's adjusted tax basis in the building and land after the complete liquidation? Building Land Tax basis