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In a qualifying reorganization, Cato Corporation exchanges $ 1 , 2 0 0 , 0 0 0 of stock and property valued at $ 5

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In a qualifying reorganization, Cato Corporation exchanges $1,200,000 of stock and property valued at $500,000( $245,000 basis) for all of
Firestar Corporation's assets, which have a value of $1,700,000 and a $350,000 basis. Firestar retains the property received from Cato. The
exchange meets the 368 requirements.
a. What is Cato's recognized gain/loss from the reorganization?
Cato recognizes a
of $
.
b. What is Firestar's recognized gain/loss from the reorganization?
Firestar recognizes a
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