X Corp. is owned 60% by Adams and 40% by Black. X has the following assets: Adjusted Basis FMV Equipment $ 75,000 $ 120,000 Land 180,000 390,000 Inventory 110,000 90,000 The land is encumbered by a $70,000 mortgage placed on it at the time that it was acquired. Adams' basis in his X Corp. stock is equal to $262,000 and Black's basis in his X Corp. stock is equal to $205,000. Pubco, a publicly held corporation, whose stock is traded on the New York Stock Exchange, wanted to acquire X Corp.'s assets. On June 12, 2020, X Corp and its shareholders entered into an agreement with Pubco, whereby X Corp transferred its assets to Pubco for 5,000 shares of Pubco stock valued at $500,000 and $30,000 of cash. In addition, Pubco assumed the 70,000 mortgage on the Land. X Corp was immediately liquidated and the Pubco stock and cash were distributed to Adams and Black. Adams received 3,000 shares of Pubco stock worth $300,000 and $18,000 of cash. Black received 2,000 shares of Pubco stock worth $200,000 and $12,000 of cash. Adams' and Black's combined stock interest in Pubco was less than .000001% following the completion of the transactions described above. a) What is the nature or type of the transaction described above? Which of the corporate entities, if any, must recognize a gain or loss as a result of the above transaction and what is the amount of that gain or loss, if any? Explain your answer. b) Adams has a realized gain (loss) of _______________ as a result of the above transaction, and a recognized gain (loss) of _____________. Adams has an ____________ adjusted basis in his Pubco stock. Explain your answer. c) Black has a realized gain (loss) of _______________ as a result of the above transaction, and a recognized gain (loss) of _____________. Black's has an ____________ adjusted basis in his Pubco stock. Explain your answer. d) Assume this transaction has the same structure as the previous questions, except the amount of Pubco stock and cash exchanged for the X Corp assets is as follows, X Corp transferred its assets to Pubco for 4,500 shares of Pubco stock valued at $450,000 and $80,000 of cash. Once again, Pubco assumed the 70,000 mortgage on the Land. X Corp was immediately liquidated and the Pubco stock and cash were distributed 60% to Adams and 40% to Black. What is the nature or type of the transaction described above? Which of the corporate entities, if any, must recognize a gain or loss as a result of the above transaction and what is the amount of that gain or loss, if any? Explain your answers.