The stock in Black Corporation is owned by Sam and Susan, who are unrelated. Sam owns 70% and Susan owns 30% of the stock in Black Corporation. The following assets are to be distributed in complete liquidation of Black Corporation: Adjusted Fair Market Basis Value Cash $100,000 $100,000 Inventory 120,000 140,000 Equipment 220,000 180,000 Land 150,000 180,000

a. What gain or loss would Black Corporation recognize if it distributes the cash, inventory, and equipment to Sam and the land to Susan?

b. What gain or loss would Black Corporation recognize if it distributes the cash, inventory, and land to Sam and the equipment to Susan?