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1.The stock in Camel Corporation is owned by Albert and Tomoko, who are unrelated. Albert owns 30% and Tomoko owns 70% of the stock in Camel Corporation. All of Camel Corporation's assets were acquired by purchase. The following assets are to be distributed in complete liquidation of Camel Corporation:
a. What gain or loss would Camel Corporation recognize if it distributes the land to Albert and the cash, inventory, and equipment to Tomoko?
b. What gain or loss would Camel Corporation recognize if it distributes the inventory and equipment to Albert and the cash and land to Tomoko?
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