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(7) Y owns all of the stock of X, with a basis of $1 million. X owns $1 million cash and a hotel. X has
(7) Y owns all of the stock of X, with a basis of $1 million. X owns $1 million cash and a hotel. X has $1 millions of E&P. B wants to buy the stock of X for $5M after X has distributed the cash, but will pay $6 million for the stock without a prior distribution to Y. What should Y want, and why?
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Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne M. Mowen
3rd Edition
0324002327, 978-0324002324
