23)

T co. was merged into P co. pursuant to a statutory merger. Joe, a T co. shareholder, exchanged his T co. stock ($65,000 FMV, $20,000 basis) for $40,000 P co. stock, $20,000 cash and a P co. security (principal amount and fmv $5,000). Pursuant to the merger, T co. transferred to P co. its sole asset ($400,000 FMV, $200,000 basis) and liabilities ($300,000). Assume all judicial doctrines have been satisfied.

Joe's realized and recognized gain is, respectively?

	a.	$45,000 and $20,000
	b.	None of these.
	c.	$45,000 and $25,000
	d.	$40,000 and 0

24)

Joe's basis in the P co. stock and P co. security is, respectively?

	a.	None of these.
	b.	$20,000 and $5000
	c.	$40,000 and $5000
	d.	$45,000 and $5000

25)

P co.'s recognized gain and basis in the assets received from T co. is, respectively?

	a.	0 and $200,000
	b.	$60,000 and $260,000
	c.	None of these.
	d.	0 and $300,000

26)

T co.'s recognized gain is?

	a.	0
	b.	$100,000 due to the assumed liabilities
	c.	None of these.
	d.	$25,000 due to the cash and bonds receive

27)

If Joe had also surrendered T co. securities in the exchange with a principal amount and fmv of $3000, and Joe's basis in the securities was $1,000, Joe's recognized gain would be?

	a.	$22,000
	b.	$25,000
	c.	0
	d.	None of these.
	e.	$24,000