Robert and Sylvia propose to have their corporation, Wolverine Universal (WU), acquire another corporation, EMU Inc., in a stock-for-stock Type B acquisition. The sole shareholder of EMU, Edie Eagle, will receive $582,500 of WU voting stock in the transaction. Edie's tax basis in her EMU stock is $119,000. (Any answer representing a loss should be entered as a negative number. Leave no answer blank. Enter zero if applicable.)

a.	What amount of gain or loss does Edie recognize if the transaction is structured as a stock-for-stock Type B acquisition?
	Gain or loss recognized ___________________

b.	What is Edies tax basis in the WU stock she receives in the exchange?
	Tax basis _______________

c.	What is the tax basis of the EMU stock held by WU after the exchange?
	Tax basis _______________