The stock in Black Corporation is owned by Sam and Susan, who are unrelated. Sam owns 80% and Susan owns 20% 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	$300,000	$300,000
Inventory	75,000	100,000
Equipment	200,000	100,000

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