Pursuant to a corporate reorganization, Katie exchanged 1,000 shares in Burton Corp. with a basis of $12,000
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Question:
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.
What is Katie’s realized and recognized gain or loss from the reorganization?
What is Katie’s tax basis for her Mead Corp. stock?
Related Book For
Principles of Taxation for Business and Investment Planning 2019 Edition
ISBN: 9781260161472
22nd edition
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan
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