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In a non-liquidating reorganization, Company A transfers assets with a $200,000 adjusted basis to Company X in exchange for $400,000 of Company X stock and

In a non-liquidating reorganization, Company A transfers assets with a $200,000 adjusted basis to Company X in exchange for $400,000 of Company X stock and $100,000 of boot property. Company A has five shareholders, each of whom owns a 20% share in the company. During the reorganization, none of the boot property is distributed to shareholders. What is the taxable gain that shareholders must recognize in this situation?

The answer is $0 but I am not sure why?

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