3.

Please show the reasoning behind the answer. Thanks.

4.

Please show the reasoning behind the answer. Thanks.

Pursuant to a complete liquidation, Lilac Corporation distributes the following assets to its unrelated individual shareholders: land held for three years as an investment (basis of $300,000, fair market value of $600,000), inventory (basis of $100,000, fair market value of $80,000), and marketable securities held for four years a an investment (basis of $200,000, fair market value of $240,000). What are the tax consequences to Lilac Corporation as a result of the liquidation? O Lilac Corporation would recognize no gain or loss on the liquidation O Lilac Corporation would recognize a net capital gain of $320.000. o Lilac Corporation would recognize a net capital gain of $340,000 and an ordinary loss of $20.000. Lilac Corporation would recognize a net capital gain of $340.000. None of the other choices are correct