The stock in Ivory Corporation is owned by Gold Corporation (80%) and Imelda (20%). Gold Corporation purchased its shares in Ivory nine years ago at a cost of $650,000, and Imelda purchased her shares in Ivory four years ago at a cost of $175,000. Ivory Corporation has the following assets that are distributed in complete liquidation:

Adjusted Basis Fair Market Value

Cash $600,000 $600,000

Inventory 80,000 200,000

Equipment 350,000 200,000

1) Assume that Ivory Corporation distributes the cash and inventory to Gold Corporation. What is the recognized gain or loss to Ivory as a result of the distributions to Gold Corporation?

2) Assume that Ivory Corporation distributes the equipment to Imelda. What is the recognized gain or loss to Ivory as a result of the distributions to Imelda?

3) Assume that Ivory Corporation distributes the inventory to Imelda. What is the recognized gain or loss to Ivory as a result of the distribution to Imelda?

4) Assume that Ivory Corporation distributes the inventory to Imelda. What is the recognized gain or loss to Imelda upon the complete liquidation of Ivory?