Oriole, Inc A What Amount of Gain or Loss Does Tiger Recognize

Essay

Oriole, Inc. decided to liquidate its wholly-owned subsidiary, Tiger Corporation. Tiger had the following tax accounting balance sheet. $$\begin{array} { | l | r | } \hline \text { Taxable income from operations } & \$ 700,000 \\\hline \text { Gain on distribution of land } ( \$ 125,000 - \$ 75,000 ) & 50,000 \\\hline \text { Total taxable income } & \$ 750,000 \\\hline \text { Federal income tax } ( \$ 750,000 \times 34 \% ) & ( 255,000 ) \\\hline \text { Taxable income } & \$ 750,000 \\\hline \text { Subtract: } & \\\hline \text { Federal income tax } & \$ 255,000 ) \\\hline \text { Current E \&P } & \$ 495,000 \\\hline\end{array}$$ a. What amount of gain or loss does Tiger recognize in the complete liquidation?
b. What amount of gain or loss does Oriole recognize in the complete liquidation?
c. What is Oriole's tax basis in the building and land after the complete liquidation?