tax please solve
3.Individual Chertarg owns all the stock of Targ. Her basis in the Targ stock is $5 and her holding period is 3 years. Targowns one asset, land with a fair market value of $100 in which Targ's basis is $20. Corp Acq wants to acquire Tar. Acq transfers Tar merges $90 of Acq voting stock and $10 in cash to Targ. Targ transfers the stock and cash to Chertarg and merges into Acq . a) What is Aca's adjusted basis in the shares it issues to acquire Targ? b) 3. How much gain or loss does Acq recognize on the transfer of its shares? c) How much gain or loss does Targ recognize when it receives the Aca shares and cash? d) How much gain or loss does Chertarg recognize on receipt of the Aca stock and cash? c) Does Targ recognize gain or loss when it transfers the Acg stock and cash to Chertarg as part of the merger? If so, how much? 6) What is Chertarg's adjusted basis in the Acq stock received? 3) What is Chertarg's holding period in the Aca shares? h) What is Aca's adjusted basis and holding period in the land? 1 What if anything happens to Torg's earnings and profits? Infinstead of the prior facts, Acg transfers to Chertary Aca voting stock worth $38 and 562 in cash does Chertarg recognize gain or loss when Targ merges into Acq and it so how much is it? Briefly explain why or why not NO $ 4 % 5 3 6 7 8 9 O E R T Y P D F G H K E C V B N M 3.Individual Chertarg owns all the stock of Targ. Her basis in the Targ stock is $5 and her holding period is 3 years. Targowns one asset, land with a fair market value of $100 in which Targ's basis is $20. Corp Acq wants to acquire Tar. Acq transfers Tar merges $90 of Acq voting stock and $10 in cash to Targ. Targ transfers the stock and cash to Chertarg and merges into Acq . a) What is Aca's adjusted basis in the shares it issues to acquire Targ? b) 3. How much gain or loss does Acq recognize on the transfer of its shares? c) How much gain or loss does Targ recognize when it receives the Aca shares and cash? d) How much gain or loss does Chertarg recognize on receipt of the Aca stock and cash? c) Does Targ recognize gain or loss when it transfers the Acg stock and cash to Chertarg as part of the merger? If so, how much? 6) What is Chertarg's adjusted basis in the Acq stock received? 3) What is Chertarg's holding period in the Aca shares? h) What is Aca's adjusted basis and holding period in the land? 1 What if anything happens to Torg's earnings and profits? Infinstead of the prior facts, Acg transfers to Chertary Aca voting stock worth $38 and 562 in cash does Chertarg recognize gain or loss when Targ merges into Acq and it so how much is it? Briefly explain why or why not NO $ 4 % 5 3 6 7 8 9 O E R T Y P D F G H K E C V B N M
