The stock in Ivory Corporation is owned by Gold Corporation (8o%) and Imelda G20%). Gold Corporation purchased its shares in Ivory nine years ago at a cost of S650,000, 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: Cash: Adjusted Basis $600,000 FMV $600,000 .Inventory Adjusted Basis 80,000 FMV 200,000 .EquipmentAdjusted Basis 350,000 FMV 200,000.

A: Assume that Ivory Corporation distributes the cash and inventory to Gold Cor and the equipment to Imelda. What are the tax consequences of the distributions to Ivory Corporation, to Gold Corporation, and to Imelda? B:Assume that Ivory Corporation distributes the cash and equipment to Gold Cor poration and the inventory to Imelda. What are the tax consequences of the dis- tributions to lvory Corporation, Corporation, and Imelda?