Titan Corporation adopts a plan of liquidation. It distributes an apartment building having a $3 million FMV and a $1.8 million adjusted basis, and land having a $1 million FMV and a $600,000 adjusted basis, to MNO Partnership in exchange for all the outstanding Titan stock. MNO Partnership has an $800,000 basis in its Titan stock. Titan has claimed $600,000 of MACRS depreciation on the building. MNO Partnership agrees to assume the $3 million mortgage on the land and building. All of Titan’s assets other than the building and land are used to pay its federal income tax liability. a. What are the amount and character of Titan’s recognized gain or loss on the distribution? b. What are the amount and character of MNO Partnership’s gain or loss on the liquidation? What is its basis for the land and building? c. How would your answer to Parts a and b change if the mortgage instead was $4.5 million?