Answered: Pursuant to a plan of corporate… | bartleby

SWFT Corp Partner Estates Trusts

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 17P

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Pursuant to a plan of corporate reorganization in a
transaction that qualified as a reorganization under Code
Section 368(a)(1), Lou received the following in exchange
for a share of stock with a $95 basis to Lou:
One share of stock worth $65
Cash of $20
What is Lou's recognized gain or loss (if any) on this
exchange?
a. $0
b. $10 loss
c. $10 gain
d. $20 gain

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I want to correct answer general accounting question
Goose Corporation has a basis of $2,400,000 in the stock of Swift Corporation, a wholly owned subsidiary acquired 30 years ago. Goose liquidates Swift Corporation and receives assets that are worth $2,000,000 and have a basis to Swift of $1,700,000. a. Determine Goose Corporation’s recognized gain or loss on the liquidation. b. Determine Goose Corporation’s basis in the assets received in liquidation.
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