Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Incorporated $($WFI$).$ After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet:

$$FMVAdjusted Tax BasisAppreciationCash$ $240,000$$ $240,000$Building$48,00024,00024,000$Land$192,00096,00096,000$Total$ $480,000$$ $360,000$$ $120,000$

Under the terms of the agreement, Shauna will receive the $$240,000$ cash in exchange for her $50$ percent interest in WFI. Shauna's tax basis in her WFI stock is $$60,000.$ Danielle will receive the building and land in exchange for her $50$ percent interest in WFI. Danielle's tax basis in her WFI stock is $$120,000.$ Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation.

Note: Negative amounts should be indicated by a minus sign.

Problem $8-62$ Part a $($Algo$)$

a$.$ What amount of gain or loss does WFI recognize in the complete liquidation?