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$2.$ Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture $($ROF$).$ After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet:

FMV Adjusted Tax Basis Appreciation $($Depreciation$)$

Cash $$200,000$ $ $200,000$

Building $50,00010,00040,000$

Land $150,000200,000(50,000)$

Total $$400,000$ $$410,000$ $$(10,000)$

Under the terms of the agreement, Tiffany will receive the $$200,000$ cash in exchange for her $50$ percent interest in ROF. Tiffany's tax basis in her ROF stock is $$50,000.$ Carlos will receive the building and land in exchange for his $50$ percent interest in ROF. His tax basis in the ROF stock is $$100,000.$ Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation.

a$.$ What amount of gain or loss does ROF recognize in the complete liquidation?

b$.$ What amount of gain or loss does Tiffany recognize in the complete liquidation?

c$.$ What amount of gain or loss does Carlos recognize in the complete liquidation?

d$.$ What is Carlos's adjusted tax basis in the building and land after the complete liquidation?

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