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

		FMV			Adjusted Basis		Appreciation
Cash	$	198,400		$	198,400
Building		56,400			12,900		$ 43,500
Land		142,000			203,000		(61,000)
Total	$	396,800		$	414,300		$ (17,500)

(Any answer representing a loss should be entered as a negative number. Leave no answer blank. Enter zero if applicable.)

a.	What amount of gain or loss does 8MH recognize in the complete liquidation?
	Gain or Loss recognized ______________________

b.	What amount of gain or loss does JMI recognize in the complete liquidation?
	Gain or Loss Recognized _________________________

c.

What is JMIs tax basis in the building and land after the complete liquidation?

	Carryover tax basis
	Tax basis equal to FMV