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:

Description FMV Tax Basis Appreciation

Cash $ $200,000$ $ $200,000$

Building $50,00010,00040,000$

Land $150,00090,00060,000$

Total $ $400,000$ $ $300,000$ $ $100,000$

Under the terms of the agreement, Shauna will receive the $$200,000$ cash in exchange for her $50$ percent interest in WFI. Shauna's tax basis in her WFI stock is $$50,000.$ 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 $$100,000.$ 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.

Required:

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

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

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

What is Danielle's tax basis in the building and land after the complete liquidation?Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns $65$ shares with a basis of $$3,900,$ and Clyde

owns the remaining $35$ shares with a basis of $$12,500.$ At year$-$end, Getaway is considering different alternatives for redeeming some

shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment.

Note: Leave no answer blank. Enter zero if applicable.

Required:

a$.$ Getaway redeems $15$ of Bonnie's shares for $$2,000.$ Getaway has $$27,000$ of E&P at year$-$end and Bonnie is unrelated to Clyde.

b$.$ Getaway redeems $35$ of Bonnie's shares for $$4,000.$ Getaway has $$27,000$ of E&P at year$-$end and Bonnie is unrelated to Clyde.

c$.$ Getaway redeems $6$ of Clyde's shares for $$2,500.$ Getaway has $$27,000$ of E&P at year$-$end and Clyde is unrelated to Bonnie.

Complete this question by entering your answers in the tabs below.

Required $A$

Getaway redeems $15$ of Bonnie's shares for $$2,000.$ Getaway has $$27,000$ of E&P at year$-$end and Bonnie is unrelated to Clyde.

Note: Round your answers to the nearest whole number.

PLEASE ANSWER ALL PARTS FULLY, THANK YOU!