Hosha exchanges all of her Leaf stock for Petal stock plus $5,000 cash. The exchange is pursuant

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Hosha exchanges all of her Leaf stock for Petal stock plus $5,000 cash. The exchange is pursuant to a tax-free reorganization. Hosha paid $25,000 for the Leaf stock five years ago. The Petal stock received by Hosha has an $18,000 fair market value.

a. What is Hosha's realized and recognized gain/loss from the reorganization?

b. What is Hosha's basis in the Petal stock she received?

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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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Question Posted: Sep 09, 2015 06:45 AM

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Hosha exchanges all of her Leaf stock for Petal stock plus $5,000 cash. The exchange is pursuant

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a Assuming that this exchange qualifies for taxfree treatment under 368 the realized lo...View the full answer

South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

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