Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B
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Question:
Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock-for stock exchange. In exchange, he received stock in Apricot with a fair market value of $200,000. Julian's tax basis in the Lemon stock was $400,000. What amount of loss does Julian recognize in the exchange and what is his basis in the Apricot stock he receives?
Multiple Choice
$200,000 loss recognized and a basis in Apricot stock of $200,000.
No loss recognized and a basis in Apricot stock of $400,000.
$200,000 loss recognized and a basis in Apricot stock of $400,000.
No loss recognized and a basis in Apricot stock of $200,000.
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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