1) Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock exchange. In exchange, he received stock in Apricot with a fair market value of $252,500. Julian's tax basis in the Lemon stock was $505.000. What amount of loss does Julian recognize in the exchange and what is his basis in the Apricot stock he received?

a. $252,500 loss recognized and a basis in Apricot stock of $252,500

b. No loss recognized and a basis in Apricot stock of $505,000

c. $252,500 loss recognized and a basis in Apricot stock of $505,000

d. No loss recognized and a basis in Apricot stock of $252,000

2) Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a TypeA merger. In exchange, she received stock in Plum with a fair market value of $552,500 plus $552,500 in cash. Simone's tax basis in the Purple stock was $203,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives?

a. $902,000 gain recognized and a basis in Plum stock of $1,105,000

b. $902,000 gain recognized and a basis in Plum stock of $552,500

c. $552,500 gain recognized and a basis in Plum stock of $552.500

d. $552,500 gain recognized and a basis in Plum stock of $203,000

3) Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $535,000. The corporation basis in the Tea Company stock was $315,000. The land had a basis to Tea Company of $617,500. What amount of gain does Red Blossom recognize in the exchange and what is the basis i the land it receives?

a. $220,000 gain recognized and a basis in the land of $617,500

b. $220,000 gain recognized and a basis in the land of $535,000

c. No gain recognized and a basis in the land of $617,500

d. No gain recognized and a basis in the land of $302,500