Pursuant to a complete liquidation, Carrot Corporation distributes to its
shareholders real estate held as an investment (basis of $1,062,400, fair market value of $1,381,120).
b. Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liability of $1,168,640.
If the real estate is subject to a liability of $1,168,640, Carrot has a recognized gain of ?