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Taxation Dana owns Gal Corp. stock which she purchased ten years ago for $350,000. Pursuant to a plan of corporate reorganization, Gal Corp. will be
Taxation
Dana owns Gal Corp. stock which she purchased ten years ago for $350,000. Pursuant to a plan of corporate reorganization, Gal Corp. will be merged into Lewis Corp. As a result of the merger, Dana receives Lewis Corp. stock valued at $300,000 plus Lewis Corp. bonds valued at $100,000, in exchange for her Gal Corp. stock. |
What is Danas realized gain and recognized gain resulting from the merger? |
What is Danas tax basis for the Lewis Corp. bonds? |
What is Danas tax basis for the Lewis Corp. stock that she received? |
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