Pursuant to a corporate reorganization, Katie exchanged 1,000 shares in Burton Corp. with a basis of ($

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Pursuant to a corporate reorganization, Katie exchanged 1,000 shares in Burton Corp. with a basis of $\$ 12,000$ and a value of $\$ 9,500$, for stock in Mead Corp. worth $\$ 9,000$ and cash of $\$ 500$.

a. What is Katie's realized and recognized gain or loss from the reorganization?

b. What is Katie's tax basis for her Mead Corp. stock?

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CCH Federal Taxation 2019 Comprehensive Topics

ISBN: 9780808049081

2019 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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Question Posted: Feb 27, 2024 04:01 AM

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Pursuant to a corporate reorganization, Katie exchanged 1,000 shares in Burton Corp. with a basis of ($

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a To determine Katies realized gain or loss from the reorganization we calculate the difference between the value of the shares she exchanged in Burto...View the full answer

CCH Federal Taxation 2019 Comprehensive Topics

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