Compare the tax consequences to the shareholder and the distributing corporation of the following three kinds of corporate distributions:

1. Compare the tax consequences to the shareholder and the distributing corporation of the following three kinds of corporate distributions: ordinary dividends, stock redemptions, and complete liquidations.2. Explain the circumstances in which a liquidating corporation does not recognize gain and/or loss when making a liquidating distribution.3. Kelly Corporation makes a liquidating distribution. Among other property, it distributes land subject to a mortgage. The mortgage amount exceeds both the adjusted basis and FMV for the land. Explain to Kelly Corporation’s president how the amount of its recognized gain or loss on the distribution and the shareholder’s basis for the land are determined.