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Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock-for stock exchange. In exchange, he received stock

Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock-for stock exchange. In exchange, he received stock in Apricot with a fair market value of $435,000. Julian's tax basis in the Lemon stock was $870,000. What amount of loss does Julian recognize in the exchange and what is his basis in the Apricot stock he receives?

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