Business, 26.03.2020 18:47 SpittingFatLama

Pursuant to a complete liquidation, Carrot Corporation distributes to its shareholders real estate held as an investment (basis of $799,600, fair market value of $1,039,480). a. Determine the gain or loss recognized by Carrot on the distribution if no liability is involved. If no liability is involved, Carrot has a recognized of $ on the distribution. b. Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liability of $879,560. If the real estate is subject to a liability of $879,560, Carrot has a recognized of $ . c. Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liability of $1,119,440. If the liability were $1,119,440, Carrot's recognized on the distribution would be $ .

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