X Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals):

A Cash $70,000

B Inventory FMV $20,000

Basis 20,000

Mortgage 10,000

C Inventory FMV 30,000

Basis 15,000

Mortgage 40,000

D Capital Asset FMV 500

Basis 2,800

(Assume that X Co. acquired the property distributed to D in a Sec. 351 transfer 6 months before adopting the plan of liquidation when the FMV of the property was $800 and X Co.'s basis was $2,800).

E Capital Asset FMV 10,000

Basis 4,000

Each shareholder had a $1,000 basis in the X Co. stock.

QUESTIONS

X Co.'s recognized gain or loss on the distribution to:

A is:

a) 0

b) 70,000 capital gain

c) 69,000 capital gain

d) None of the above

B is:

a) 0

b) 10,000 ordinary income

c) 20,000 ordinary income

d) None of the above

C is:

a) 25,000 ordinary income

b) 35,000 ordinary income

c) 65,000 ordinary income

d) none of the above

D is:

a) 0

b) 10,000 capital gain

c) 6,000 capital gain

d) None of the above

E is:

a) 0

b) 10,000 capital gain

c) 6,000 capital gain

d) None of the above

The gain or loss recognized by:

A is:

a) 0

b) <1,000> capital loss

c) 69,000 capital gain

d) none of the above

B is:

a) 0

b) 9,000 capital gain

c) 19,000 capital gain

d) None of the above

C is:

a) <39,000> capital loss

b) 29,000 capital gain

c) <11,000> capital loss

d) none of the above

D is:

a) 500 capital gain

b) <500> capital loss

c) 1,800 capital gain

d) none of the above

E is:

a) 0

b) 9,000 capital gain

c) <1,000> capital loss

d) None of the above

C's basis in the property received is:

a) 5,000

b) 30,000

c) 40,000

d) None of the above

Please show work on how you got to your answer and answer all multiple choice questions

this is all of the information the question provides. please answer with the following information