Fusion Corporation is owned equally by Rocky and Samuel. Rockyand Samuel purchases their stock several years ago and haveadjusted bases for their Fusion stock of $17,000 and $30,000respectively. Each shareholder receives two liquidatingdistributions. The first liquidating distribution, made in thecurrent year, results in each shareholder receiving a one-halfinterest in a parcel of land that has a $44,000 FMV and an $14,000adjusted basis to Fusion Corporation. The second liquidatingdistribution, made in the next year, results in each shareholderreceiving $22,000 in cash. a. What are the amount and character ofRocky and Samuel’s recognized gain or loss for the current year?For the next year? Gain or Loss recognized – Current year Gain orLoss recognized – Next Year Shareholder Amount Character AmountCharacter Rocky Capital Gain/loss Capital gain/loss SamuelUnrecovered basis Capital gain/loss B. What is the basis of theland in Rocky and Samuel’s hands? Shareholder Basis Rocky $ Samuel$ C. How would your answers to Parts a and b change if the land hasa $4,000 FMV instead of a $44,000 FMV? Compute the gain or loss foreach shareholder for the current year and then for the next year.Gain or Loss recognized – Current year Gain or Loss recognized –Next Year Shareholder Amount Character Amount Character RockyUnrecovered basis Capital gain/loss Samuel Unrecovered basisCapital gain/loss What is the basis of the land, with the new FMVamount Shareholder Basis Rocky $ Samuel $