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In 2012, Knoxville Musical Sales reports taxable income of $2 million, tax preference items of $100,000, net positive alternative minimum taxable income (AMTI) adjustments of $600,000 before ACE adjustments, and ACE of $4 million. Knoxville Musical Sales is not eligible for the small corporation exception and has no AMT adjustment for the U.S. production activities deduction. Calculate the regular tax liability and the AMT liability. Submit all your calculations for this assignment.After several years of operations, the business has become unprofitable and incurred small NOLs. Its operating assets currently have a $300,000 FMV and a $500,000 adjusted basis. Another corporation wants to purchase Knoxville Musical Sales' assets for $300,000. Knoxville expects to have approximately $200,000 in cash after the payment of its liabilities. Determine the tax consequences of the transaction if Knoxville adopts a plan of liquidation, selling the assets and distributing cash in redemption of the Knoxville Musical Sales stock within a 12-month period. Submit all your calculations for this assignment.