Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Incorporated $($WFI$).$ After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet:

FMV Adjusted Tax Basis Appreciation

Cash $ $50,000$ $ $50,000$

Building $10,0005,0005,000$

Land $40,00020,00020,000$

Total $ $100,000$ $ $75,000$ $ $25,000$

Under the terms of the agreement, Shauna will receive the $$50,000$ cash in exchange for her $50$ percent interest in WFI. Shauna's tax basis in her WFI stock is $$12,500.$ Danielle will receive the building and land in exchange for her $50$ percent interest in WFI. Danielle's tax basis in her WFI stock is $$25,000.$ 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.

Note: Negative amounts should be indicated by a minus sign.

a$.$ What amount of gain or loss does WFI recognize in the complete liquidation?

b$.$ What amount of gain or loss does Shauna recognize in the complete liquidation?

c$.$ What amount of gain or loss does Danielle recognize in the complete liquidation?

d$.$ What is Danielle's tax basis in the building and land after the complete liquidation?