John owns 100 shares of DEF Corporation stock with a basis of $30,000. He exchanges these shares for $35,000 of GHI stock and $10,000 in cash as part of a tax-free reorganization. What is John's realized gain?
John owns 100 shares of DEF Corporation stock with a basis of $30,000. He exchanges these shares for $35,000 of GHI stock and $10,000 in cash as part of a tax-free reorganization. What is John's realized gain?
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 28CE
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Transcribed Image Text:John owns 100 shares of DEF Corporation stock with a
basis of $30,000. He exchanges these shares for $35,000
of GHI stock and $10,000 in cash as part of a tax-free
reorganization. What is John's realized gain?
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