Question

Hosha exchanges all of her Leaf stock for Petal stock plus $5,000 cash. The exchange is pursuant to a tax-free reorganization. Hosha paid $25,000 for the Leaf stock five years ago. The Petal stock received by Hosha has an $18,000 fair market value.
a. What is Hosha's realized and recognized gain/loss from the reorganization?
b. What is Hosha's basis in the Petal stock she received?


$1.99
Sales4
Views315
Comments0
  • CreatedSeptember 09, 2015
  • Files Included
Post your question
5000