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In a qualifying reorganization, Cato exchanges $1.2 million worth of stock and property valued at $500,000 ($245,000 basis) for all of Firestar's assets, which have
In a qualifying reorganization, Cato exchanges $1.2 million worth of stock and property valued at $500,000 ($245,000 basis) for all of Firestar's assets, which have a value of $1.7 million and a $350,000 basis. Firestar distributes the property received from Vato. The echange meets the section 368 requirements.
A. What is Cato's recognized gain/loss from the reorganization?
B. What is Firestar's recognized gain/loss from the reorganization
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