shareholders any cash remaining after taxes. Assume a $21\%$ corporate tax rate and a $15\%$ capital gains tax rate.

Read the requirements.

Requirement a$.$ What are the tax consequences of the liquidation to Majority Corporation, Subsidiary Corporation, and Melena?

for any zero balances. Use a minus sign or parentheses to enter a loss.$)$

Tax consequences to Subsidiary Corporation:

Subsidiary recognizes a

gain$/($loss$)$ on the distribution to Majority Corporation and a

distribution of property to Melena. Subsidiary's total tax on any net gains is

to Majority and

to Melena.

gain$/($loss$)$ on the

cash to distribute$-$