07-12. (LO. 2)Rebecca holds 100 shares of Gotchas stock that she purchased for $1,600 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and $320. Gotchas is valued at $35.20 per share and Solis at $3.20 per share.

What is Rebecca's realized and recognized gain/loss from the reorganization?

Assuming that this exchange qualifies for tax-free treatment under 368, Rebecca's realized gain is $, her recognized gain is $.

What is Rebecca's basis in her Solis stock?$

7. 07-16.(LO. 5)

Whitney Corporation acquires Jessamine Corporation. Prior to the merger, Jessamine accumulated a $18,190,000 NOL. After the reorganization, Whitney generates $45,475,000 of taxable income. Whitney is subject to a marginal state and Federal tax rate of 25% and the 382 limitation does not apply. How much does Whitney Corporation save in Federal income taxes by being able to utilize Jessamine's NOL carryover?

Whitney Corporation saves in state and Federal income taxes by being able to utilize Jessamine's NOL carryover