Liam owns Oakridge Ltd. stock with a basis of $30,000. He exchanges this for $36,000 of PineTech Inc. stock and $10,000 of PineTech securities as part of a tax-free reorganization. What is Liam's realized gain?
Liam owns Oakridge Ltd. stock with a basis of $30,000. He exchanges this for $36,000 of PineTech Inc. stock and $10,000 of PineTech securities as part of a tax-free reorganization. What is Liam's realized gain?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:Liam owns Oakridge Ltd. stock with a basis of $30,000. He exchanges this for
$36,000 of PineTech Inc. stock and $10,000 of PineTech securities as part of
a tax-free reorganization.
What is Liam's realized gain?
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