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Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a type a merger. In exchange, she received stock in
Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a type a merger. In exchange, she received stock in Marketing with a fair market value of $562,500 plus $562,500 in cash. Celeste's tax basis in the Supply Chain stock was $1,315,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives?
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