Walter wants to sell his wholly-owned C Corporation, Cream City Root Beer Inc. The fair market value of his stock ($200,000) exceeds the corporations adjusted basis for the assets ($60,000).

(a) Your client is Walter: Do you recommend he sell his stock or have Cream City sell its assets and make a liquidating dividend to him?

(b) Instead, your client is Charles, who is in negotiations to purchase the business of Cream City Root Beer Inc. Which do you recommend to Charles: a $200,000 purchase of the corporations assets or $200,000 for Walters stock?