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Example 4-5: Linda owns 100 shares of Yale Corporation C.S. that has a $27,000 basis and a $50,000 FMV. She receives 100 nontaxable stock rights

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Example 4-5: Linda owns 100 shares of Yale Corporation C.S. that has a $27,000 basis and a $50,000 FMV. She receives 100 nontaxable stock rights with a $4,000 FMV. What is Linda's basis in the stock and the stock rights after the distribution? Now Assume Linda plans to sell the stock rights within the next few months. What can she do to minimize her gain on the sale of the stock rights

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