Five shareholders each contribute $$10,000$ in exchange for a $20$$$,$ interent in corporate stock of FIU Corporation. Fifteen years later, FIU Corp. erters into a plan of complete liquidation. Under the plan, FIU Corporation distribuites assets with a basls of $$50,000$ and a FMY of $$30,000.$ As such, each shareholder necelves a pro rata share or $$6,000$ of the assets upon liquidation. FIU Corp, has $$125\mathrm{.}000$ of ES$.$P$.$

What are the tax conneguences to FIU Corporation?

Under Section $33$dal. FIU Comporation will be treated as if it wold the ansets to the shareholders for fair market value.

The cormoramion wit etport a gain of $$20\mathrm{.}000$

The corporation will report a lows of $$20,000$ that can be recognired in liquidation.

The section $336(d)$ loss limieations are applicable.

a and c are correct