Question: Exercise 20-24 (Algorithmic) (LO. 3) In a qualifying reorganization, Cato Corporation exchanges $5,470,000 worth of stock and property valued at $2,188,000 ($1,094,000 basis) for

Exercise 20-24 (Algorithmic) (LO. 3) In a qualifying reorganization, Cato Corporation exchanges

Exercise 20-24 (Algorithmic) (LO. 3) In a qualifying reorganization, Cato Corporation exchanges $5,470,000 worth of stock and property valued at $2,188,000 ($1,094,000 basis) for all of Firestar Corporation's assets, which have a value of $7,658,000 and a $1,531,600 basis. Firestar distributes the property received from Cato. The exchange meets all Code requirements. If an amount is zero, enter "0". a. What is Cato's recognized gain/loss from the reorganization? Cato recognizes of $ b. What is Firestar's recognized gain/loss from the reorganization? Firestar recognize of $ a gain a loss no gain or loss

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