Global Automotive Corp. owns 80 shares of the 100 outstanding shares of common stock of Specific Motors Corp. The remaining 20 shares of the Specific Motors stock are owned by Tucker Vehicles, Inc. Global's basis for its shares is $8,000,000; Tucker's basis is $2,000,000. Specific Motor's assets consist of an automobile factory, with a fair market value of $20,000,000 and a basis of $9,000,000 and 100 shares of stock in Adobe Motors Corp., with a fair market value of $5,000,000 and a basis of $4,000,000. Both assets have been held for more than 5 years. (a)If Specific Motors liquidates and distributes the factory to Global and the Adobe Motors stock to Tucker, what are the tax consequences to Specific Motors, Global, and Tucker?

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a Tax consequences Particulars Taxable gainloss Specific motors 12000000 Global automotive ... View the full answer