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in October 201 1 Mike acquired 100% of Bass Corporation common stock by transferring property with an adjusted basis of S 1,100,000 and fair market

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in October 201 1 Mike acquired 100% of Bass Corporation common stock by transferring property with an adjusted basis of S 1,100,000 and fair market value of 4,400,000. Bass is a quaifed small business corporation. On April 1, 2017, Mike sells all of the Bass Corporation common stock for $16,500,000. Read the tequirements Requirement a. What is the amount of gain that may be excluded trom Mike's gross income? (Enter a "o if none of the gain may be excluded from the taxpayers gross income.) The amount of gain that may be excluded from Mike's gross income is Requirement b. What would your answer be if the fair market value of the Bass stock were only $850,000 upon its issue? (Enter a "o ifnone of the gain may be excluded from the taxpayers gross income.) If the fair market value of the Bass stock were only $850,000 upon its issue, the amount of gain that may be excluded from Mike's gross income is $[ Requirement c. What would your answer be if the stock were sold after two years? (Enter a "o inone of the gain may be excluded fromthe taxpayers gross income.) If the stock were sold after two years, the amount of gain that may be excluded from Mike's gross income is Requirement d. Can Mike avoid recognizing gain by purchasing replacement stock? OA. Ye. If Mike acqures $4,400,000 or more of qualifed stock wihin six months no gain is recognized, providing the original stock was held for over five years O B. No. Mike must recognize gain on the sale of the Bass Corporation common stock because the sale exceeded $10,000,000 O c. Yes If Mke acqures $16,500,000 or more of qualfled stock within 60 days no gain is recognized, providing te ongina stock was held for over six months O D. Yes. If Mike acqures $10,000,000 or more of qualfied stock within 60 days no gain is recognized, providing the onginal stock was held for over five years

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