Paper Corporation adopts a plan of reorganization and exchanges 1,000 shares of its voting stock and $50,000

Question:

Paper adopts a plan of reorganization and exchanges 1,000 shares of its voting stock and $50,000 in cash for Chase Corporation's assets having a $200,000 adjusted basis and a $275,000 FMV. Chase is subsequently liquidated. What is Paper Corporation's basis in the assets acquired in the exchange?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...