The Long Corporation has $500,000 of assets with a basis of $350,000 and liabilities of $125,000. ShortCo acquires Long’s assets and $100,000 of liabilities by exchanging $400,000 of its voting stock. Long distributes the ShortCo stock and remaining liabilities to its shareholder in exchange for her Long stock with a basis of $275,000 and then it liquidates. What type of restructuring is this? Are there any recognized gains or losses? Explain your answer.

Answer rating: 100% (QA)

answer Theis will be no Gains or losses to be recognized The restructuring is Ga... View the full answer