Wetsist corporation has 3 shareholders:

x,Y

, and

Z

.

x

and

Y

are siblings;

Z

is unrelated to

x

and

Y

. Each shareholder has 200 shares with a basis of

$50

per share and have held the stock for 5 years. Walsh corporation liquidates and distributes a building with an adjusted basis of

$100,000

and a fair market value of

$80,000

to shareholder

x

.\ Question: Describe the tax consequences (with calculations) of the liquidating distribution to shareholder

x

and Walsh Corporation.

corporation has 3 shareholders: X,Y, and Z.X and Y are siblings; Z is unrelated to X and Y. Each shareholder has 200 shares with a basis of $50 per share and have held the stock for 5 years. Walsh corporation liquidates and distributes a building with an adjusted basis of $100,000 and a fair market value of $80,000 to shareholder X. Question: Describe the tax consequences (with calculations) of the liquidating distribution to shareholder X and Walsh Corporation