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PV , Incorporated transferred the operating assets of one of its business divisions into newly incorporated SV , Incorporated in exchange for 1 0 0

PV, Incorporated transferred the operating assets of one of its business divisions into newly incorporated SV, Incorporated in exchange for 100 percent of SVs stock. PVs adjusted basis in the operating assets was $7 million, and its FMV was $13 million.Required:b. Compute PVs realized gain, recognized gain, and basis in its SV stock.

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