Exercise 2016 [Algorithmic] (LD. 1] Pursuant to a complete liquidation, Carrot Corporation distributes to its shareholders real estate held as an investment [basis of 31,314,400, fair market value of $1,?08,?20). 3. Determine the gain or loss recognized by Carrot on the distribution if no liability.r is involved. If no liability is involved, Carrot has a recognized gain V of S[:] on the distribution. b. Determine the gain or loss recognized bv Carrot on the distribution if the real estate is subject to a liability of 51,445,840. If the real estate is subject to a liability of $1,445,340, Carrot has a recognized gain V of 5:. 1:. Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liabilitv of $1,840,160. If the liability.r were $1,840,160, Carrot's recognized gain * on the distribution would be $l:]