VERSION A: 2019 ACCT 4210A: IN CLASS EXERCISE: LIQUIDATIONS (5 POINTS) 1. (1 POINT) Which I of the following would not be considered a sufficient reason for Chrysler Corp to liquidate? a Chrysler Corp liquidated when the Securities and Exchange Commission (SEC) began to investigate it for securities fraud b. By Chrysler Corp liquidating and re-forming as a limited liability company, Chrysler will eliminate double taxation c. Chrysler Corp's board of directors decided to liquidate Chrysler because Chrysler was not going to become profitable in the near future d. Chrysler Corp no longer wants to be a US (domestic corporation), instead it wants to be a foreign corporation 2. (2 POINTS) As part of a qualified liquidation, Universal Corp distributed to its shareholder, Betty land (51,000 adjusted basis; $2,000 FMV; owned for 5 years) in exchange for 100% of Betty's Universal stock ($100 adjusted basis) Universal has accumulated earnings and profits (E&P) of $5,000 and a $2,000 net operating loss (NOL) carryover from its prior tax year. What are Universal Corp's and Betty's federal tax consequences? 3. (2 POINTS) As part of a qualified liquidation, MGM Corp, which is a wholly owned subsidiary of Sony Corp, distributed to Sony land ($20,000 adjusted basis; $60,000 FMV; owned for 10 years) in exchange for 100% of Sony's MGM stock ($10,000 adjusted basis). MGM has earnings and profits (E&P) of 0 net operating loss (NOL) carryover from its prior tax year. What are MGM's and Sony's federal income tax consequences