QUESTION 19 A shareholder bought 10,000 shares of Amazon Corporation for $30,000 several years ago. When the stock is valued at $120,000, Amazon redeems the shares in exchange for 2,000 shares of Tattoo Corporation stock and a $12,000 Tattoo bond. This transaction meets the requirements of S 368. The shareholder has a basis in the Tattoo stock of QUESTION 20 Bruno Corporation merges into Zeus Corporation by exchanging all of its assets for 600,000 shares of Zeus stock valued at $1 per share and $200,000 cash. Wanda, the sole shareholder of Bruno, surrenders her Bruno stock (basis $900,000) and receives all of the Zeus stock transferred to Bruno plus the $200,000. Wanda recognizes a gain of