QUESTION $11($ChaPTER $20)$

Pittsburgh Corporation has three shareholders: Jim, Connor, and Nick. Jim, Connor and Nick are not

related to each other. Jim owns $70\%$ of Pittsburgh Corporation, Connor owns $20\%$ and Nick owns

$10\%.$ Pittsburgh Corporation distributes an apartment building $($FMV $$4,200,000,AB$$$5,160,000)$ in

liquidation. The building was originally contributed by Jim one year ago in a $$351$ when the FMV was

$$6,000,000$ and the $AB$ was $$5,700,000.$

$($a$)$ How much loss will the corporation recognize if it distributes the building $50\%$ to Connor and

$50\%$ to Nick?

$($b$)$ How much loss will the corporation recognize if it distributes the building to Jim alone?

$($c$)$ How much loss will the corporation recognize if it distributes the building $80\%$ to Jim, $10\%$ to

Connor and $10\%$ to Nick?