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The stock in Ivory Corporation is owned by Gold Corporation {80%} and Imelda (20%). Gold Corporation purchased its shares in Ivory nine years ago at a cost of $650,000, and Imelda purchased her shares in Ivory four years ago at a cost of $136,000. Ivory Corporation has the following assets that are distributed in complete liquidation: Adjusted Basis Fair Harloet Value Cash $600,000 $600,000 Inventory 80,000 200,000 Equipment 350,000 200,000 a. Assume that Ivory Corporation distributes the cash and inventory to Gold Corporation and the equipment to Imelda. Indicate whether the following statements are '\"l'rue\" or "False" regarding the tax consequences of the distributions to Ivory Corporation. to Gold Corporation, d and to Imelda. . Code 332 applies to the liquidaon, and Ivory Corporation recognizes no gain on the distribution of I 'I T. F the cash and inventory to Gold Corporation. . Ivory reoognizes the $150,000 loss realized on the distribution of the equipment to Imelda. I 'I I J . Gold Corporation recognizes no gain or loss on the liquidation and takes a basis of $80,000 in the I 'I inventory. . . Gold's basis in its Ivory Corporation shock is eliminated. I 9| . Imelda recognizes a gain of $25,000. I 'I b. Assume that Ivory Corporation distributes the cash and equipment to Gold Corporation and the inventory to Imelda. Indicate whether the following statements are "True" or "False" regarding the tax consequences of the distributions to Ivory Corporation, to Gold Corporation, and to Imelda. 5 332 applies, and Ivory recognizes no gain or loss on the distribution of the cash and equipment to Gold Corporation. . Imelda recognizes a gain of $25,000. . Ivory Corporation recognizes the gain of $120,000 on the distribution of the inventory to Imelda. . Gold Corporation recognizes no gain or loss on the liquidation and takes a basis of $200,000 in the equipment. . Gold's basis in its Ivory Corporation stock is eliminated