The stock in Black Corporation is owned by Joseph and Elizabeth, who are unrelated. Joseph owns $80\%$

and Elizabeth owns $20\%$ of the stock in Black Corporation. The following assets are to be distributed in

complete liquidation of Black Corporation:

a$.$ What gain or loss would Black Corporation recognize if it distributes the cash and equipment

to Joseph and the inventory to Elizabeth?

b$.$ What gain or loss would Black Corporation recognize if it distributes the cash and inventory to

Joseph and the equipment to Elizabeth?