Rebecca holds 100 shares of Gotchas stock that she purchased for $4,000 several years ago. In a merger of Gotchas into Solis, Inc., Rebecca exchanges her 100 Gotchas shares for 1,000 Solis shares and $250. Gotchas is valued at $5.00 per share and Solis at $5.25 per share.

a. What is Rebeccas realized and recognized gain/loss from the reorganization? Assuming that this exchange qualifies for tax-free treatment under 368, Rebeccas realized gain is $ , her recognized gain is $ .

b. What is Rebeccas basis in her Solis stock? $