In a merger in which it subsequently? liquidates, Jones Corporation transfers to Brown Corporation all its assets and $90,000 of its liabilities in exchange for Brown voting common? stock, having a $550,000 FMV. Jones?'s
basis in its assets is $375,000.
Requirement a. What is the amount of Jones's real zed and recognized gain or loss on the asset transfer? Begin by determining the formula, then compute the realized gain or loss to Jones on the asset transfer. (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter a "O if there is no realized gain or loss.) - Realized gain (loss) (For zero gain or loss recognized, enter "0" in the answer box.) Jones will recognize Requirement b. What is Brown's basis in the assets received? Brown Corporation's basis in the assets recelved is $ Requirement c. What is the amount of Jones's real zed and recognized gain or loss when it distributes the stock to its shareholders? (For zero gain or loss, make sure to enter "O in the answer box.) When Jones distributes the stock to its shareholders, it will realize and recognize a gain or loss of Requirement d. How would your answers to Parts ac change if Jones's basis in the assets instead had been $900,000? (For zero gain or loss, make sure to enter "0 in the answer box) and S Brown Corporation's basis in the assets received would be When Jones distributes the stock to its shareholders, it would realize and recognize a gain or loss of Requiremen e. How would our answers to Parts a- c change Brown instead had ex ange SS A ofs Brown Corporation's basis in the assets received would be S When Jones distributes the stock to its shareholders, it would realize and recognize a gain or loss of 0 cash or ones assets, and Jones su se uen y qudated Assume a 34% cor rate a or ero gan n s make sure to entero n eans er box. would be by Jones. Requirement a. What is the amount of Jones's real zed and recognized gain or loss on the asset transfer? Begin by determining the formula, then compute the realized gain or loss to Jones on the asset transfer. (Use parentheses or a minus sign for a loss. Complete all answer boxes. Enter a "O if there is no realized gain or loss.) - Realized gain (loss) (For zero gain or loss recognized, enter "0" in the answer box.) Jones will recognize Requirement b. What is Brown's basis in the assets received? Brown Corporation's basis in the assets recelved is $ Requirement c. What is the amount of Jones's real zed and recognized gain or loss when it distributes the stock to its shareholders? (For zero gain or loss, make sure to enter "O in the answer box.) When Jones distributes the stock to its shareholders, it will realize and recognize a gain or loss of Requirement d. How would your answers to Parts ac change if Jones's basis in the assets instead had been $900,000? (For zero gain or loss, make sure to enter "0 in the answer box) and S Brown Corporation's basis in the assets received would be When Jones distributes the stock to its shareholders, it would realize and recognize a gain or loss of Requiremen e. How would our answers to Parts a- c change Brown instead had ex ange SS A ofs Brown Corporation's basis in the assets received would be S When Jones distributes the stock to its shareholders, it would realize and recognize a gain or loss of 0 cash or ones assets, and Jones su se uen y qudated Assume a 34% cor rate a or ero gan n s make sure to entero n eans er box. would be by Jones
