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Amanda [17]
3 years ago
9

Pursuant to plan of reorganization adopted in the curren year, newman corporation exchanged property with an adjusted basis of 8

0,000 for 5,000 shares of jabot corporation stock. The Jabot shares had a fair market value of 95,000 on the date of the exchange. Newman Corporation was liquidated shortly after the exchange with its sole shareholder. Victor, receiving the jabot shares. Victor had a dollar 90,000 basis in the Newman shares surrendered.
1. As a result of the exchange, what are Victor's recognized gain and his basis in the jabot stock?
Business
1 answer:
Alenkinab [10]3 years ago
4 0

Answer:

Explanation:

Victor's recognized gain equals to zero, because this exchange qualifies under Sec. 368 as a tax-free reorganization.

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Answer:

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