Rx Corp wants to acquire all the stock of Vit B corp. Vit B is wholly owned by Honey, an individual shareholder who has owned the stock for 5 years. Honey's basis in Vit B is $75. Vit B's assets are worth $200 and the adjusted basis of those assets is $40. If Rx gives Honey voting stock in Rx worth $250 in exchange for all the Vit B shares 1. How much gain or loss does Honey recognize on the transaction? 2. What is Honey's adjusted basis and holding period in the Rx shares she receives? 3. What is Rx's adjusted basis and holding period in the Vit B shares it receives? 4. What is Vit B's basis in the Vit B assets which it continues to own? 5. Would Rx be able to make a section 338 election in connection with the acquisition? Explain briefly why or why not. 6. Would the answer to question #1 change (and if so why and how) if Honey received $220 of voting stock and $30 worth of bonds convertible into common stock of Rx