Loser Corporation decides to liquidate and files a plan of liquidation with the IRS. It is unable to sell its assets, so it distributes them to its sole shareholder, Bummer.There are only three assets: inventory (fair market value  $4,000;

basis  $3,500), building (fair market value  $56,000; basis  $67,000), and machines (fair market value  $38,000; basis  $29,500). Bummer surrenders all of his stock with a basis of $187,000 in exchange for the property.What are the tax consequences to Loser and to Bummer as a result of this liquidation?

AppendixLO1