VI. (You may use one page for Question (1) and one page for Question (m) Tree Line Corporation has been an "S" corporation since its inception in 2000. It is owned by 5 shareholders, A (30 shares), B (30 shares), C (20 shares), D (10 shares) and E (10 shares), respectively. Country Day, LLC is a wholly owned LLC by Individual R, and is treated as a disregarded entity. Among Tree Line's assets are appreciated real estate, goodwill, going concern value and several contracts that will be terminated if the contacts are sold or the company is liquidated. Country Day would like to buy the assets of Tree Line but does not want to terminate the contracts, thus it must acquire the stock of Tree Line. Also, Country Day wants to acquire at least 80% of Tree Line stock. A, B and C are willing to sell their stock in Tree Line to Country Day, but D and E would like to keep their stock in Tree Line after Country Day buys it. Tree Line's assets are almost fully depreciated. County Day would also like to receive a cost basis for the assets of the Tree Line. You are consulted. (m) Is it possible for A, B & C to sell their Tree Line stock to Country Day, for D and E to retain their stock in Tree Line, and for Country Day to receive a fair market value in the assets of Tree Line? (n) What are the consequences to the selling shareholders, A,B, C, and D and E who are not selling? VI. (You may use one page for Question (1) and one page for Question (m) Tree Line Corporation has been an "S" corporation since its inception in 2000. It is owned by 5 shareholders, A (30 shares), B (30 shares), C (20 shares), D (10 shares) and E (10 shares), respectively. Country Day, LLC is a wholly owned LLC by Individual R, and is treated as a disregarded entity. Among Tree Line's assets are appreciated real estate, goodwill, going concern value and several contracts that will be terminated if the contacts are sold or the company is liquidated. Country Day would like to buy the assets of Tree Line but does not want to terminate the contracts, thus it must acquire the stock of Tree Line. Also, Country Day wants to acquire at least 80% of Tree Line stock. A, B and C are willing to sell their stock in Tree Line to Country Day, but D and E would like to keep their stock in Tree Line after Country Day buys it. Tree Line's assets are almost fully depreciated. County Day would also like to receive a cost basis for the assets of the Tree Line. You are consulted. (m) Is it possible for A, B & C to sell their Tree Line stock to Country Day, for D and E to retain their stock in Tree Line, and for Country Day to receive a fair market value in the assets of Tree Line? (n) What are the consequences to the selling shareholders, A,B, C, and D and E who are not selling