QUESTION 21 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 has a basis in her Zeus stock of QUESTION 22 Purple Corporation merged into Green Corporation. Purple exchanged all of its assets (value of $450,000, basis of $300,000) to Green. In return, Green exchanged land valued at $450,000 (basis of $50,000). Purple distributed the land, its only remaining asset, to its sole shareholder Jace and then dissolved. Jace had a stock basis in Purple stock of $200,000. As a result of the exchange, Green recognizes gain of QUESTION 21 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 has a basis in her Zeus stock of QUESTION 22 Purple Corporation merged into Green Corporation. Purple exchanged all of its assets (value of $450,000, basis of $300,000) to Green. In return, Green exchanged land valued at $450,000 (basis of $50,000). Purple distributed the land, its only remaining asset, to its sole shareholder Jace and then dissolved. Jace had a stock basis in Purple stock of $200,000. As a result of the exchange, Green recognizes gain of