Mr. Rogers transferred 100 percent of his stock in Mr. Rogers Neighborhood Company to PBs Television Corporation in a Type A merger. In exchange he received stock in PBS with a fair market value of $1,000,000 plus $500,000 in cash. Mr. Roger's tax basis in the Mr. Roger's Neighborhood stock was $300,000. What is Mr. Roger's basis in the PBS Television stock he receives in the merger?

Mr. Rogers transferred 100 percent of his stock in Mr. Rogers Neighborhood Company to PBs Television Corporation in a Type A merger. In exchange he received stock in PBS with a fair market value of $1,000,000 plus $500,000 in cash. Mr. Roger's tax basis in the Mr. Roger's Neighborhood stock was $300,000. What is Mr. Roger's basis in the PBS Television stock he receives in the merger?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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