Question: Jefferson Millinery, Inc. (JMI) decided to liquidate its wholly-owned subsidiary, 8 Miles High, Inc. (8MH). 8MH had the following tax accounting balance sheet. a. What

Jefferson Millinery, Inc. (JMI) decided to liquidate its wholly-owned subsidiary, 8 Miles High, Inc. (8MH). 8MH had the following tax accounting balance sheet.

a. What amount of gain or loss does 8MH recognize in the complete liquidation?
b. What amount of gain or loss does JMI recognize in the complete liquidation?
c. What is JMI's tax basis in the building and land after the complete liquidation?

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