Laura owns 2,000 shares of X corporations common stock. She purchased the stock five years ago for $80 per share. Laura also owns $90,000 of X corporation bonds that she purchased for $90,000. As part of a B reorganization Laura exchanges her stock and bonds for 700 shares of A corporations common stock with a FMV of $250 per share plus $100,000 of A Corporations bonds with a FMV of $95,000.

a) Compute Lauras realized and recognized gain or loss.

b) Compute Lauras basis in the A corporation stock and bonds.

c) How, if at all would your answers to a) and b) above change, if Lauras share of

X Corporations E&P is $15,000