Rebecca holds 100 shares of Gotchas stock that she purchased for $3,100 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and $620. Gotchas is valued at $68.20 per share and Solis at $6.20 per share. a. What is Rebecca's realized and recognized gain/loss from the reorganization? The exchange of Rebecca's stock has no b. What is Rebecca's basis in her Solis stock? income tax consequences for Gotchas or Solis. Feedback Check My Work The tax treatment for the parties involved in a tax-free reorganization almost parallels the treatment under the like-kind exchange provisions of 1031. In the simplest like-kind exchange, neither gain nor loss is recognized on the exchange of like-kind property.