In a merger in which it subsequently liquidates, Jones Corporation transfers to Jackson Corporation all its assets and $130,000 of its liabilities in exchange for Jackson voting common stock, having a $500,000FMV. Jones's basis in its assets is $450,000. Read the requirements. (For zero gain or loss recognized, enter a 0 .) Jones will recognize of this realized gain (loss.) Requirement b. What is Jackson's basis in the assets received? Jackson Corporation's basis in the assets received is Requirement c. What is the amount of Jones's realized and recognized gain or loss when it distributes the stock to its shareholders? (For zero gain or loss, make sure to enter a 0 .) 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 a - c change if Jones's basis in the assets instead had been $900,000 ? (For zero gain or loss, make sure to enter a 0.) Jones's realized and recognized amounts would be , respectively. Jackson 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 Requirement e. How would your answers to Parts a c change if Jackson instead had exchanged $500,000 cash for Jones assets, and Jones subsequently liquidated. Assume a 21% corporate tax rate. (For zero gain or loss, make sure to enter a zero.) A of would be by Jones. Jackson 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 In a merger in which it subsequently liquidates, Jones Corporation transfers to Jackson Corporation all its assets and $130,000 of its liabilities in exchange for Jackson voting common stock, having a $500,000FMV. Jones's basis in its assets is $450,000. Read the requirements. (For zero gain or loss recognized, enter a 0 .) Jones will recognize of this realized gain (loss.) Requirement b. What is Jackson's basis in the assets received? Jackson Corporation's basis in the assets received is Requirement c. What is the amount of Jones's realized and recognized gain or loss when it distributes the stock to its shareholders? (For zero gain or loss, make sure to enter a 0 .) 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 a - c change if Jones's basis in the assets instead had been $900,000 ? (For zero gain or loss, make sure to enter a 0.) Jones's realized and recognized amounts would be , respectively. Jackson 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 Requirement e. How would your answers to Parts a c change if Jackson instead had exchanged $500,000 cash for Jones assets, and Jones subsequently liquidated. Assume a 21% corporate tax rate. (For zero gain or loss, make sure to enter a zero.) A of would be by Jones. Jackson 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
