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Pursuant to a plan of reorganization adopted in the current year, Newman Corporation exchanged properly with an adjusted basis of dollar80,000 for 5,000 shares of

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Pursuant to a plan of reorganization adopted in the current year, Newman Corporation exchanged properly with an adjusted basis of dollar80,000 for 5,000 shares of jabot Corporation stock. The jabot shares had a fair market value of dollar95,000 on the date of the exchange. Newman Corporation was liquidated shortly after the exchange with its sole shareholder. Victor, receiving the jabot shares. Victor had a dollar90,000 basis in the Newman shares surrendered. As a result of the exchange, what are Victor's recognized gain and his basis in the jabot stock? Pursuant to a plan of corporate reorganization adopted in July of the current year. Gow exchanged the 500 shares of Lad Corporation common stock that he had bought in January o the same year at a cost of dollar5,000 for 100 shares of Rook Corporation common stock having a fair market value of dollar6,000. Gow's recognizod gain on this exchange was dollar1,000 long-term capital gain. dollar1,000 short-term capital gain. dollar1,000 ordinary income. dollar0 New City gave Greedy Company, Inc. dollar138,000 cash to purchase an office located within the city limits. Three months after the gift, Greedy Company purchased an office for dollar400,000. What is Greedy Company's basis in the office? dollar0 dollar138,000 dollar262,000 dollar400,000 On July 1, Alan Rees, sole proprietor of Kee Nail, transferred all of Kee's assets to Merit, Inc.. a new corporation, in exchange for some of Merit's stock. Al Clyde, who is not related to Rees, also bought some of Merit's stock on July 1. Merit's outstanding capital stock consisted of 1,000 shares of common stock with a par value of dollar100 per share. For the transfer of Kee Nail's assets to be tax-free, what is the minimum number of shares of Merit's stock that must be owned by Rees and Clyde immediately after the exchange? 500 501 800 801

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