In regards to tax code, Sec 1202 Exclusion:

Julio is the sole shareholder of a corporation he formed seven years ago by contributing $500,000 for all of the corporation's stock. This year, he sold all of the stock to a competitor for $100,000,000. Julio's marginal tax rate is 37%. Julio must recognize a gain of $____. His tax liability will increase as a result of the gain by $______ .

Julio is the sole shareholder of a corporation he formed seven years ago by contributing $500,000 for all of the corporation's stock. This year, he sold all of the stock to a competetor for $100,000,000. Julio's marginal tax rate is 37%. Julio must recongize a gain of $ His tax liability will increase as a result of the gain by $