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Ted purchased all of the stock of Fontana Manufacturing Corporation in 2017 for$170,000. Under Ted's leadership, Fontana Manufacturing soon became unprofitable,and Ted decided to liquidate

Ted purchased all of the stock of Fontana Manufacturing Corporation in 2017 for$170,000. Under Ted's leadership, Fontana Manufacturing soon became unprofitable,and Ted decided to liquidate Fontana as ofthe close of business on June 30,2019. All of Fontana's assets were needed to pay third-Party creditors,and Ted received nothing for his $170,000 investment.

a.Describe the amount and character of Ted's loss.

b.How would your answer to (a) change if Fontana Manufacturing were instead owned by TED Corporation?

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