Jefferson Millinery Inc. (JMI) decided to liquidate its wholly-owned subsidiary, 8 Miles High Inc. (8MH). 8MH had the following tax accounting balance sheet: FMV Adjusted Basis Appreciation Cash
Cash $200,000 $200,000
Building 50,000 10,000 40,000
Land 150,000 90,000 60,000
Total $400,000 $300,000 $100,000
A. What amount of gain or loss does 8MH recognize in the complete liquidation?
B. What amount of gain or loss does JMI recognize in the complete liquidation?
C. What is JMI's tax basis in the building and land after the complete liquidation?

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.