What is a complete$$ liquidation? A partial$$ liquidation? Explain the difference in the tax treatment accorded these two different events.

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Part $1$

A$.$

A complete liquidation is defined as one or a series of distributions made by a liquidating corporation that completely cancels or redeems all of its stock in accordance with a plan of liquidation. A partial liquidation is defined as a distribution that$(1)$ is not essentially equivalent to a dividend and$(2)$ is pursuant to a plan of liquidation and occurs within the tax year in which the plan is adopted or within the succeeding tax year. The complete liquidation is taxed to the extent the shareholder recognizes a gain or loss. A partial liquidation results in exchange treatment for a noncorporate shareholder.