Question

Rebecca holds 100 shares of Gotchas stock that she purchased for $1,000 several years ago. In...

Rebecca holds 100 shares of Gotchas stock that she purchased for $1,000 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and $500. Gotchas is valued at $40.00 per share and Solis at $3.50 per share.

a. What is Rebecca’s realized and recognized gain/loss from the reorganization?

b. What is Rebecca’s basis in her Solis stock

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Rebecca holds 100 shares of Gotcha stock that she purchased for $1000 several years ago. In...
Rebecca holds 100 shares of Gotcha stock that she purchased for $1000 several years ago. In a merger of Gotchas into Solis, Inc, Rebecca exchanges her 100 Gotcha shares for 1000 Solis shares and $500. Gotcha is valued at $40 per share and Solis at $3.50 per share. A. What is Rececca's realized and recognized gain/loss from the reorganization? B. What is Rebecca's basis in her Solis stock?
Marilyn owned 500 shares of Ibis stock that she purchased several years ago for $25,000. This...
Marilyn owned 500 shares of Ibis stock that she purchased several years ago for $25,000. This year, she sold 200 of the shares to her brother for $7,000, its fair market value, when she wanted money for some plastic surgery. Determine Marilyn’s realized and recognized gain or loss on the sale and her basis in the 300 shares remaining. Determine her brother’s basis in the purchased stock and his realized and recognized gain or loss if he sells the shares...
Several years ago, Jan paid $25,000 for 1,000 shares of stock in ABC. During the current...
Several years ago, Jan paid $25,000 for 1,000 shares of stock in ABC. During the current year ABC declares a two-for-one stock split. Shortly thereafter, Jan sells 500 shares of ABC stock for $18,000. Her recognized gain on the sale of the 500 shares is: A. $0. B. $11,750. C. $5,500. D. $9,000. E. $7,500.
A. MDC Corporation (E & P of $800,000) has 1,000 shares of stock outstanding. That stock...
A. MDC Corporation (E & P of $800,000) has 1,000 shares of stock outstanding. That stock is held by Jeff (550 shares) and Thomas (450 shares), who are unrelated individuals. Bell redeems 450 of Jeff’s shares for $1,000 per share. Jeff paid $800 per share for his Bell stock nine years ago. This is a qualified redemption. What is Jeff’s realized gain/ loss? What is his recognized gain/ loss? What is the character of the recognized gain/ loss? B: See...
Ten years ago, Ms. Dee purchased 1,800 shares of Fox common stock for $134 per share....
Ten years ago, Ms. Dee purchased 1,800 shares of Fox common stock for $134 per share. On June 2 of the current year she sold 900 shares for $97 per share. Compute Ms. Dee’s recognized loss on sale assuming that: Required: She purchased 1,000 shares of Fox common stock on June 28 for $99 per share. She purchased 1,000 shares of Fox common stock on August 10 for $104 per share. Compute Ms. Dee’s tax basis in the 1,000 shares...
A shareholder bought 10,000 shares of Coral Corporation for $50,000 several years ago. When the stock...
A shareholder bought 10,000 shares of Coral Corporation for $50,000 several years ago. When the stock is valued at $90,000, Coral redeems the shares in exchange for 5,000 shares of Blush Corporation stock and a $10,000 Blush bond. This transaction meets the requirements of § 368. Which of the following statements is false with regard to this transaction? a. The shareholder has a realized gain of $40,000. b. The shareholder has a postponed gain of $30,000. c. The shareholder has...
Eight years ago, SW purchased 1,525 shares of Delta stock. On May 20 of the current...
Eight years ago, SW purchased 1,525 shares of Delta stock. On May 20 of the current year, it sold these shares for $68 per share. In each of the following cases, compute SW’s recognized gain or loss on this sale: SW’s cost basis in the 1,525 shares was $81 per share. It did not purchase any other Delta shares during this year. SW’s cost basis in the 1,525 shares was $81 per share. It purchased 1,725 shares of Delta on...
Christina, who is single, purchased 500 shares of Apple Inc. stock several years ago for $21,000....
Christina, who is single, purchased 500 shares of Apple Inc. stock several years ago for $21,000. During her year-end tax planning, she decided to sell 250 shares of Apple for $9,250 on December 30. However, two weeks later, Apple introduced its latest iPhone, and she decided that she should buy the 250 shares (cost of $9,750) of Apple back before prices skyrocket. 1. What is Christina's deductible loss on the sale of 250 shares? What is her basis in the...
Christina, who is single, purchased 500 shares of Apple Inc. stock several years ago for $21,000....
Christina, who is single, purchased 500 shares of Apple Inc. stock several years ago for $21,000. During her year-end tax planning, she decided to sell 250 shares of Apple for $9,250 on December 30. However, two weeks later, Apple introduced its latest iPhone, and she decided that she should buy the 250 shares (cost of $9,750) of Apple back before prices skyrocket. (Leave no answers blank. Enter zero if applicable.) b. Assume the same facts, except that Christina repurchased only...
Brad exchanges 1,000 shares of Goodyear Corporation stock having a $15,000 basis for Atlas Corporation stock...
Brad exchanges 1,000 shares of Goodyear Corporation stock having a $15,000 basis for Atlas Corporation stock having a $25,000 FMV as part of a Type A tax-free reorganization. Brad also receives $6,000 cash as part of the reorganization. How much gain must Brad recognize?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT