1 Normal I No Spac. Heading 1 Heading 2 = W Select Create and Share Requ Adobe PDF Signal Adobe Acrobat Paragraph IS Styles Editing 4. Please answer all of the questions from problem C:7-46: Amount and Character of Shareholder Gain or Loss. Yong owns 100% of Theta Corporation stock having a $600,000 adjusted basis. As part of the merger of Theta into Alpha Corporation, Yong exchanges his Theta stock for $750,000 cash and Alpha common stock having a $3 million FMV. Yong retains a 60% interest in Alpha's 100,000 shares of outstanding stock immediately after the merger. CO(Ctrl) a. What income or gain does Subsidiary recognize as a result of making the liquidating distributions What are the amount and character of Yong's recognized gain? b. What is Yong's basis in the Alpha stock? c. How would your answers to Parts a and b change if instead Yong's 60,000 Alpha shares were one-third of Alpha's outstanding shares