Taxpayer Hue wants to sell the stock he owns in Company Y ($2,000 a/b; $10,000 FMV). Company Y owns the following assets:

A/B FMV

Cash 2,000 2,000

Inventory 8,000 6,000

Goodwill 1,000 3,000

All things being equal, among the three options below, please check off the option that you recommend:

Hue should instruct Company Y to sell the assets and then liquidate: _____X_____

Hue should sell the stock of Company Y:_________________________________

Hue should be indifferent if there is a stock or asset deal: ___________________