liquidations x co adopts a plan of complete liquidation and makes the following pro 285150

X Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals):??A Cash: $70,000; ?B Inventory: FMV $20,000 Basis $20,000 Mortgage $10,000; ?C Inventory: FMV $30,000 Basis $15,000 Mortgage $40,000; ?D Capital Asset: FMV $500 Basis $2,800; ?(Assume that X Co. acquired the property distributed to D in a Sec. 351 transfer 6 months before adopting the plan of liquidation when the FMV of the property was $800 and X Co.’s basis was $2,800). ?E Capital Asset: FMV $10,000 Basis $4,000. ??Each shareholder had a $1,000 basis in the X Co. stock. ??X Co.’s recognized gain or loss on the distribution to: ??A is: a. 0; b. $70,000 capital gain; c. $69,000 capital gain; d. None of the above. ??B is: a. 0; b. $10,000 ordinary income; c. $20,000 ordinary income; d. None of the above. ??C is: a. $25,000 ordinary income; b. $35,000 ordinary income; c. $65,000 ordinary income; d. None of the above.??D is: a. 0; b. $ 2,300 capital loss; c. $ 300 capital loss; d. None of the above. ??E is: a. 0; b. $10,000 capital gain; c. $6,000 capital gain; d. None of the above.”